10 Things You Can't Deduct From Your Taxes Anymore
A new tax landscape will affect every income tax return filed from 2018 to 2025 (when the individual provisions of the Tax Cuts and Jobs Act of 2017 are scheduled to expire).
- Personal exemptions: You can no longer claim a deduction for yourself, your spouse or any of your dependents. Instead of the $4,050 tax deduction for each person, the child tax credit for qualifying children under the age of 17 has been increased by $1,000 and made available to more taxpayers. Additionally, there is a new $500 credit for all other dependents, though there is no credit for the taxpayer and spouse.
- Alimony: Only on divorce or separation agreements executed after 12/31/18.
- Non-military job-related moving expenses: Only an active-duty member of the armed forces who moves due to a military order can claim that activity as an adjustment to income.
- Home equity loan interest: Interest on mortgage debt to pay for anything other than to buy, build or substantially improve a residence is not deductible. Additionally, existing home equity debt is not grandfathered. It is now more important than ever for homeowners who can itemize to keep separate track of acquisition debt and home equity debt going back to the original purchase.
- Theft losses: Personal theft losses can no longer be deducted on Schedule A.
- Casualty losses not from a disaster declared by the President: This policy is subject to $100-per-casualty and 10%-of-AGI limitations.
- Employee business expenses: You can no longer deduct business meals, travel and entertainment from your taxes including using your car for business.
- Investment expenses: These include custodial and maintenance fees for investment and retirement accounts, fees for collecting dividends and interest, fees paid to investment advisers, the cost of investment media and services, and safe deposit box rental fees.
- Tax preparation fees: Fees can no longer be deducted on Schedule A.
- Legal fees paid on an award, judgment or settlement: A legal award, judgment or settlement for personal physical injuries or physical sickness is tax exempt. However, the related legal fees are not deductible since that income is not taxable.
*Consult a tax advisor; Courtesy of MSN.com