Tax Topic

Itemized deductions and Exemptions (phase out is gone again)

In addition to nearly doubling the standard deduction (also see the tax topic “Standard Deduction”), the Tax Cut and Jobs Act of 2017 changed several itemized deductions and eliminated personal exemptions. As a result, many individuals who previously itemized may find it more beneficial to take the standard deduction.

For 2018, itemized deductions are no longer limited by the amount of your adjusted gross income (previously they were “phased out,” meaning they were reduced by 3% of an amount in excess of an adjusted gross income threshold).

For 2018, miscellaneous itemized deductions have been eliminated. This includes unreimbursed employee expenses, union dues, tax preparation fees and investment expenses, including investment management fees, safe deposit box fees and investment expenses from pass-through entities.

For 2018, you can’t claim a personal exemption deduction for yourself, your spouse, or your dependents. However, changes to the standard deduction amount and Child Tax Credit may offset at least part of this change for most families and, in some cases, may result in a larger refund.

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