- Mortgage interest deduction – You may have heard that they lowered the amount of interest you could deduct up to $1,000,000 of the loan value for your main home to $750,000. This however does NOT apply to grandfathered acquisition debt. What this means is that you STILL can deduct your interest up to $1,000,000 of the loan for debt acquired before 2018. What they did take out is the deduction for home equity debt
- The tax code is leaving charitable deductions but before there was a 50% AGI limit, now it is 60%.
- Casualty losses are no longer allowed! Only exception is Federally declared disaster areas
- Gambling losses was being threatened but they retained this deduction
- After 2018, the “Moving” deduction is suspended through 2025
- They retained the teacher deduction to the $250 maximum. It was set to increase to $500 but it was rejected, House did not want it increased
- Personal exemption is in place for 2017 but suspended for 2018 through 2025
- The requirement for filing will now be generally based on the standard deduction
- The child tax credit is increased to $2,000 per qualifying child- Up to $1,400 of the credit is refundable
- Standard deduction for Singe taxpayers is increasing to $12,000 | Head of Household is increasing to $18,000 | Married Filing Jointly is increasing to $24,000 but be aware the exemption you claim for each person on the tax return is no longer in place