In order to make the most out of your 2018 tax year, it’s important to note the deductions that are reduced or are no longer available as a result of the Tax Cuts and Jobs Act. When you file your tax return this year, be aware of the reduced or eliminated tax deductions in 2019. Here are a few tax deductions that you may notice are missing from past years’ returns.
Eliminated: Personal and Dependent Exemptions
Personal and dependent exemptions are eliminated. Previously, you could claim about $4000 for yourself, your spouse, or any dependents in your household. Due to the Tax Cuts and Jobs Act’s higher standard deduction amount as well as the doubling of the child tax credit, the reasoning behind this elimination is that other changes in the law will make up for the loss.
Eliminated: Moving Expenses
This deduction was designed to help those who moved due to a new job or relocation. According to the new law, this no longer applies unless you’re active military moving as a result of direct orders.
Eliminated: Casualty and Theft Loss
Uninsured casualty and theft loss used to be claimable. Now they are only able to be claimed as a result of a federally declared disaster (such as the Calfornia wildfires).
Reduced: Mortgage Interest Deduction
Before the TCJA, you could deduct interest on a home mortgage of up to $1 million. Now you can only deduct interest for up to $750,000 ($375,000 if you’re filing jointly). However, there are some exceptions to this if your home mortgage was taken prior to December 2017.
Do you have questions about reduced or eliminated tax deductions for 2019?
If you have questions about what deductions are reduced or eliminated when you’re filing your tax returns this year, make sure you ask your financial advisor for help.
Our team will gladly help you sort out your options. At Chatterton and Associates, we recognize that every situation is different and requires an individual and personal solution. Contact us today so that we can discuss your financial needs.
The Team at Chatterton & Associates