The new tax law does not cut graduate school tuition deductions or the deduction for teachers buying school supplies, as many had feared. But a number of individual itemized deductions are going away in 2018. Here’s a partial list:
- Personal exemptions – you used to get $4,500 off of your taxes for you and every dependent. Now that’s gone.
- Moving expense deductions (except for active military personnel)
- Home equity loan interest
- Professional license and regulatory fees
- Parking and transit reimbursement from your employer
- Required medical tests for a job
- Continuing professional education
- Tax preparation fees
- Investment fees
- Alimony deductions (though that doesn’t phase in until 2019)
And of course State and Local Taxes (SALT) deductions are now capped at $10,000.
Some of these changes could have significant social impact over time. To see how they impact you, and how you can save as much money on your taxes as possible, contact Tax Ninja for a consultation.