Tax Deductions That Are Disappearing This Year
This tax filing season taxpayers are poised to experience the impact of the Tax Cuts and Jobs Act of 2017, which eliminated beneficial deductions and credits. Pushed as the largest tax overhaul in 30 years, the law could be a mixed bag for many households as it increases the standard deduction and child tax credit but makes more than a dozen deductions extinct.
Some filers may receive a significant tax break, while others may see their refunds shrink as a result of new deduction rules.
While some crucial tax breaks might return after some provisions of the tax law expire in 2025, here are 12 tax deductions that disappeared this year:
- The standard $6,350 deduction.
- Personal exemptions.
- Unlimited state and local tax deductions.
- A $1 million mortgage interest deduction.
- An unrestricted deduction for home equity loan interest.
- Deductions for unreimbursed employee expenses.
- Miscellaneous itemized deductions.
- A deduction for moving expenses.
- Unrestricted casualty loss deduction.
- Alimony deduction.
- Deductions for certain school donations.
- Deductions from tax extenders.
If you typically deduct many of these items from your taxes, you could be in trouble this year.