Solved: Why are my 2018 deductions and exemptions much less than 2017? Where can I see a full comparison of the two years?
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

Why are my 2018 deductions and exemptions much less than 2017? Where can I see a full comparison of the two years?

 
1 Best answer

Accepted Solutions
Highlighted
Level 15

Why are my 2018 deductions and exemptions much less than 2017? Where can I see a full comparison of the two years?

1.  Medical does not count at 100%.

2.  Charitable is limited to a percent of your income.

3.  State/Local/Sales/Property taxes are capped at $10,000 total.

4.  If claiming Mortgage Interest, be sure to indicate that the mortgage is secured by the property.


View solution in original post

2 Replies
Highlighted
Level 15

Why are my 2018 deductions and exemptions much less than 2017? Where can I see a full comparison of the two years?

1.  Medical does not count at 100%.

2.  Charitable is limited to a percent of your income.

3.  State/Local/Sales/Property taxes are capped at $10,000 total.

4.  If claiming Mortgage Interest, be sure to indicate that the mortgage is secured by the property.


View solution in original post

Highlighted
Level 15

Why are my 2018 deductions and exemptions much less than 2017? Where can I see a full comparison of the two years?

There are no personal exemptions under the new tax law.  Instead you have a higher standard deduction.

https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

Many taxpayers are surprised this year because their itemized deductions are not having the same effect as they did on past tax returns.  The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach.  The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.


Your standard deduction lowers your taxable income.  It is not a refund 

2018 Standard Deductions:

Single   $12,000  (+ $1600 65 or older)

Married Filing Separately    $12,000  (+ $1300 65 or older)

Married Filing Jointly  $24,000  (+ $1300 each spouse 65 or older)

Head of Household  $18,000  (+ $1600 65 or older

Look at line 8 of your Form 1040 to see your standard or itemized deductions.


**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Privacy Settings