QuickList for 2018

The Tax Cut and Jobs Act of 2017 has brought these changes

Itemized deductions:

  • Medical/dental expense threshold remains at 7.5% AGI for one more year, reverts to 10% AGI in 2019.
  • Tax category (real estate tax, state tax, excise tax) limited to 10K.
  • Limit on NEW mortgages: deductible interest on up to 750K, existing loans retain 1M debt limit.
  • No deduction for interest on equity loans/LOCs unless used for home improvements.
  • No employee business/investment deductions (the "greater than 2% AGI" category).
  • No theft losses; only casualty losses in presidential-declared disaster areas.
  • Phaseout of itemized deductions at higher income eliminated.

Other changes:

  • Elimination of personal exemptions but almost doubling of standard deductions.
  • Child tax credit doubled and available to higher-income taxpayers.
  • Other dependent $500 credit available (older dependents), nonrefundable credit.
  • Health care penalty eliminated in 2019.
  • Moving expenses only for military.
  • As of 2019, new alimony contracts not a deductible expense nor taxable income.
  • AMT to affect fewer taxapayers due to increases in its exemption allowance.
  • 529 plan distributions can be used for elementary/high school (10K cap per student).
  • Estate/Gift exemption doubled to $11,180,000 (very few will be subject to tax).
  • 100% bonus depreciation through 2022, then allowable amount decreasing 20%/year.
  • Business entertainment deduction (Schedule C) eliminated. Business meals remain.