The difference you see between 2017 exemptions and deductions and 2018 exemptions and deductions is due to the changes from the new tax law, the Tax
Cuts and Jobs Act of 2017.
- The personal exemption of $4,050 for the taxpayer, spouse and dependent has been suspended from 2018-2025.
- The standard deduction has increased for married filing jointly to $24,000.
Several changes have been made to itemized deductions, see below for a few of them:
- State, local, property, and
sales tax (SALT) deduction – capped at $10,000 ($5,000 if married filing
separately)
- Mortgage interest – capped at
interest on $750,000 of mortgage debt.
- Home equity loan or line of
credit -- interest is deductible only if loan was used to buy, build, or
substantially improve your home and your total mortgage debt doesn’t
exceed $750,000.
- Miscellaneous deductions
subject to the 2% limit – suspended.
- Personal casualty and theft
losses – suspended (with exceptions).
Due to all the changes to itemized deductions, your standard deduction is now greater than your allowable itemized deductions.
Please see the TurboTax FAQ below on How will tax reform affect my 2018 federal taxes:
https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return
