Because of the significant tax overhaul by Congress under the Tax Cuts and Jobs Act, there have been significant eliminations and reductions in individual income tax breaks. In addition, the changes in the tax brackets for individuals may have put you in a higher tax bracket. Furthermore, the payroll withholding tables during the year, do to match the yearly income tax tables.
The Tax Cut and Jobs Act has also limited or eliminated certain deductions that can be claimed on your tax return, for example:
- There is a $10,000 cap on state and local taxes. State income taxes, property taxes, sales taxes, or foreign taxes combined cannot exceed $10,000.
- Mortgage interest is deductible on the first $750,000 of principal.
- The Home Equity Line of Credit interest deduction has been eliminated starting in 2018.
- Miscellaneous Itemized Deductions (safe deposit fees, tax preparation fees, unreimbursed employee expenses, etc) have been abolished.
- Moving expenses, unless you are in the military, have been eliminated.
There are about 21 changes that have been made under the Tax Reform laws. Please refer to the IRS Tax Reform page for additional information.
