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Level 1
June 6, 2019
Question

Why can't I use Itemized Deduction in 2018 although all items added up (same items in 2017) exceed 12,000 standard deduction?

  • June 6, 2019
  • 1 reply
  • 8 views
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    1 reply

    Level 13
    June 6, 2019

    The most common reason that people are getting the standard deduction instead of the itemized deduction with the same expenses are because of the tax law changes below:

    1. The $10,000 SALT Cap.  Last year you could deduct mostly all of your state and local taxes and real estate taxes.  This year the total limit is $10,000
    2. Elimination of the miscellaneous itemized expenses including employee business expenses and investment fees
    3. Elimination of the deduction for casualty and losses
    4. The new method of calculating deductible mortgage interest on a home equity loan or refinance

    So even though you may enter an amount that is greater than $12,000, everything you entered may not have been deductible.

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