What deductions were eliminated from the Tax Cuts and Jobs Act?
Asked by: Nicholas Jenkins | Last update: September 3, 2025Score: 4.8/5 (43 votes)
What are four things the Tax Cuts and Jobs Act 2017 changed?
The Tax Cuts and Jobs Act ("TCJA") changed deductions, depreciation, expensing, tax credits and other tax items that affect businesses. This side-by-side comparison can help businesses understand the changes and plan accordingly.
What did the 2018 Tax Cuts and Jobs Act eliminate?
Employment-related moving expenses will no longer be deductible, except for moves related to active-duty military service. The miscellaneous itemized deduction, including tax-deductions for tax-preparation fees, investment expenses, union dues, and unreimbursed employee expenses, are eliminated.
Are personal exemptions still allowed with the New Tax Cuts and Jobs Act?
By statute, certain items that were indexed for inflation in the past are currently not adjusted. Personal exemptions for tax year 2025 remain at 0, as in tax year 2024. The elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act of 2017. Itemized deductions.
What is the standard deduction for the Tax Cuts and Jobs Act?
Under the TCJA, basic standard deduction amounts in 2018 were nearly doubled to $12,000 for single filers, $18,000 for head of household filers, and $24,000 for married joint filers. These amounts were annually adjusted for inflation after 2018. In 2024, these amounts are $14,600, $21,900, and $29,200, respectfully.
How has The Tax Cuts and Jobs Act Changed Itemized Deductions?
Are itemized deductions being phased out?
The TCJA eliminated or restricted many itemized deductions for 2018 through 2025. This, together with a higher standard deduction, reduced the number of taxpayers who itemize deductions. In 2017, 31 percent of all individual income tax returns had itemized deductions, compared with just 9 percent in 2020.
What is the extra standard deduction for seniors over 65?
For 2024, the additional standard deduction amounts for taxpayers who are 65 and older or blind are: $1,950 for Single or Head of Household (increase of $100) $1,550 for married taxpayers or Qualifying Surviving Spouse (increase of $50)
Have personal exemptions been eliminated?
Under the tax reform bill that passed into law at the end of 2017, the personal exemption was eliminated. This means you cannot claim it on your taxes starting with the tax year 2019. So the following information on the personal exemption only applies if you are filing a return for tax year 2017 or earlier.
What are the itemized deductions for 2024?
In 2024, these deductions include up to $10,000 for a combination of state and local property taxes and state and local sales or income taxes paid;5 home mortgage interest paid on mortgage debt of $750,000 or less;6 eligible charitable contributions; certain investment interest; medical expenses above 7.5% of a ...
How much of Social Security is taxable?
Since 1993, beneficiaries with income above a higher set of statutory thresholds are subject to federal income taxation on up to 85% of their Social Security benefits. their Social Security benefits is rising. federal income taxes rose from 2.2% in 1994 to 6.6% in 2022.
What deductions were eliminated in 2018?
Eliminated deductions include those for moving expenses and alimony, while limits were placed on deductions for mortgage interest and state and local taxes. Key expenses no longer deductible include those related to investing, tax preparation, and hobbies.
Is it worth itemizing deductions anymore?
If your standard deduction is less than your itemized deductions, you should consider itemizing to save money. If your standard deduction is more than your itemized deductions, it might be worth it to take the standard and save some time.
Why is my mortgage interest no longer tax deductible?
No matter when the indebtedness was incurred, you can no longer deduct the interest from a loan secured by your home to the extent the loan proceeds weren't used to buy, build, or substantially improve your home.
What assets are eligible for 100% bonus depreciation?
- Modified Accelerated Cost Recovery System (MACRS) property with a recovery period of 20 years or less. ...
- Depreciable computer software.
- Water utility property.
- Qualified leasehold improvement property, like any improvement to the interior portion of a nonresidential building.
What happens to the standard deduction in 2025?
Standard deduction for 2025 tax year
The 2025 tax year standard deduction for married couples filing jointly rises to $30,000 — an $800 increase from $29,200 for the 2024 tax year. For single taxpayers, the standard deduction is $15,000, a $400 increase from the 2024 deduction of $14,600.
What is the salt write-off?
The SALT deduction allows taxpayers who itemize their deductions to reduce their taxable income by the amount of state and local taxes they paid that year, up to a maximum of $10,000. (For married couples filing separately, the limit is $5,000.)
What are three itemized deductions I could claim?
Home mortgage interest. Income, sales, real estate and personal property taxes. Losses from disasters and theft. Medical and dental expenses over 7.5% of your adjusted gross income.
Are Medicare premiums tax deductible?
Yes, Medicare premiums are tax deductible as a medical expense as long as you meet two requirements. First, you must itemize your deductions on your tax return to deduct them from your taxable income. Second, only medical expenses that exceed 7.5% of your adjusted gross income (AGI) are deductible.
What are the new tax breaks for 2024?
After an inflation adjustment, the 2024 standard deduction increases to $14,600 for single filers and married couples filing separately and to $21,900 for single heads of household, who are generally unmarried with one or more dependents. For married couples filing jointly, the standard deduction rises to $29,200.
Are personal exemptions still allowed with the new Tax Cuts and Jobs Act law?
The deduction for personal exemptions is suspended (reduced to $0) for tax years 2018 through 2025 by the Tax Cuts and Jobs Act. Although the exemption amount is zero, the ability to claim an exemption may make taxpayers eligible for other tax benefits.
What is the extra standard deduction for seniors over 65 in 2024?
IRS extra standard deduction for older adults
For 2024, the additional standard deduction is $1,950 if you are single or file as head of household. If you're married, filing, jointly or separately, the extra standard deduction amount is $1,550 per qualifying individual.
Are dependent deductions no longer available?
Personal Exemption Deduction Eliminated
Personal exemption deductions for yourself, your spouse, or your dependents have been eliminated beginning after December 31, 2017, and before January 1, 2026. Resources: Tax Tips: Tax Reform Tax Tip 2019-140, Tax Reform Tax Tip 2019-27, Tax Reform Tax Tip 2019-35.
At what age is Social Security no longer taxed?
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
At what age do seniors stop paying federal taxes?
Taxes aren't determined by age, so you will never age out of paying taxes. People who are 65 or older at the end of 2024 have to file a return for tax year 2024 (which is due in 2025) if their gross income is $16,550 or higher. If you're married filing jointly and both 65 or older, that amount is $32,300.
Is there a federal tax credit for being over 65?
A credit for taxpayers: aged 65 or older OR retired on permanent and total disability and received taxable disability income for the tax year; AND. with an adjusted gross income OR the total of nontaxable Social Security, pensions annuities or disability income under specific limits.