Home equity interest – interest on mortgage debt to pay for anything other than to buy, build or substantially improve a residence – is not deductible. Additionally, existing home equity debt is not grandfathered.
It is now more important than ever for homeowners who can itemize to keep separate track of acquisition debt and home equity debt going back to the original purchase of a residence.
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85 thoughts on “9 Things You Can No Longer Deduct From Your Taxes”
The new tax laws only benefits the very wealthy or if you are professional working under a 1099,LLC, or LLP
With what I have found so far, I would disagree with those who say this tax reform is only for the wealthy. I printed out and read the 2018 Tax Forms and Instructions. So far, the most significant plus I see is a simplified 1040 Federal Tax Form which I believe will allow many to understand and file their own taxes if they so choose.
Another change is to married couples filing joint. They will now use the exemption amount of $24,000.00 rather than the previous amount of $12,700.00. The previously allowed per capita exemption of $4,500.00 has been eliminated, so the new amount of the standard deduction is diminished for a married couple with no children by $9,000.00. This still makes the standard deduction change beneficial by increasing the amount of their non-taxed income by $3,400.00.
I haven’t played all aspects of the revised forms, tax tables and overall changes yet to include EIC and Child Tax Credits for married couples with children, but it seems that low to middle income married couples with no children do benefit from the increase of the standard deduction.
Also, you’ll notice some of the amounts listed on the tax tables have changed.
It will be interesting to see how the changes play out as I know I will be doing taxes for a young married couple with one child making about $40, 000.00 and a married couple with no children making about $90,000.00.
I would caution the Trump haters to look at this honestly and objectively rather than so quickly saying the changes are for the rich.
I agree with you, but you have people that say no matter what you do that it’s for the wealthy benefit, these are usually the ones that work, or pY little or none in taxes.
But there are no deductions for a lot of things and now you have to have $12,000 before you can deduct using schedule A. If you have always filed the short form you are correct, but now most people will have to file the short form as they will not have enough to file any other way. I am anxious to hear what everyone thinks about their extra income on their paycheck vs their tax refund this year!
The general population has preferred to get a Refund after filing Vs a bigger paycheck. We must change the public’s mind so they see the Refund as money they “could have/should have” been receiving all during the tax year. They need to understand paying more tax as a savings account is economically dumb. I don’t mean to insult anyone (I’ve done it myself) and I believe getting a big refund is used for 2 reasons. #1 as a savings account and #2 out of fear they will have to pay a big bill when they file. Fear of a confrontation with IRS is also in there. Hopefully we can help people understand there are ways to put money into a savings account other than putting it into the IRS savings account.
Have to disagree with much of what you’ve claimed. We are very charitably inclined and give close to a third of our income to worthy causes. That said the loss of the individual and investment expense deductions will come close to doubling our taxable income this year. If we were very wealthy, a large corporation or selfish and not inclined to help others, the new tax law and increased standard deduction might benefit us, but the way it is now we are screwed. Thanks a heap Trump and his lackeys. These guys do not care a flip for the average American in anything they do.
30% is exceptionally generous
Most generous people are also kind and thoughtful. Commentary and motive do not match, causing disbelief. The truly generous will pay the tax also, when asked.
Thanks
George
Laughing–just wait til you get Biden’s tax surprises…you will be wishing for the good ol trump days.
I do agree to one aspect of the Trump tax cuts. The average wage earner filing taxes as a couple with no children, should make out very well if they file jointly and take the standard deduction and don’t do much charity. Further, that same couple, God bless them, can’t save much, especially if they live on a pension and retired, on medications and over the counter Drugs because those expenses have a high bar to overcome before they can deduct such medical bills. I believe that the Trump tax cuts which definitely favored the corporations and the super rich pale in comparison to the less fortunate and, elderly and wage earners.
Thank you, well said. I too have a lot to charity
During the void period and will not deduct, because of the Standard deduction which was fairly good. But honestly speaking, the tax cuts did a lot better for big businesses and wealthy than wage, earners and those in a modest pension.
Still no relief for the single working guy!! Like my son lower income high tax bracket!!! Me dont see any change. Still looks like the wealthy get the lions share.
Thank you for taking the time to write this. Now maybe people will listen to what President Trump has been saying all along. I personally feel he is doing a great job. Thanks again, Marie
100% agreed-only Trump haters would write this without any knowledge-and that is the form of TRUMP haters-no facts, just repeating propaganda from the media and the pols like pelosi, schummer, waters, etc.
Trump’s despicable and very easy to hate. Remember his announcement to his rich friends partying at Mar A Lago right after his Republican buddies passed the Job and Tax Scam? “You just got a lot richer.” Let me say it again–“YOU JUST GOT A LOT RICHER!” That’s all you need to know about Trump. And that cost you and me and our kids $2.5T. “You just got a lot richer.” The Rich, that is.
A man that lies and up stories and doesn’t turn his tax return over like every other President. And went bankrupt four times. U trust. Ur sick or afraid of the truth. Spineless whimpers kissing everybody’s ass in this world ain’t gonna get you anywhere you should be ashamed of yourself but you’re too stupid to realize that!
The Trump tax cuts cost close to 2 Trillion dollars to the US treasury; yes one good part was the 24000 dollar standard deduction that working couples got. Absent from the tax cut bill was what retirees living on a fixed income and social security facing enormous
Expenses over prescription and over the counter pharmaceutical medication and treatment; add to this problem, retirees past 71 years of age are taxed on their required minimum distributions which rapidly demolish their savings, since no provision exists for them to save for their healthcare and their expenses that are ever increasing.
Add to the unfairness, social security is also under attack that further imperils the existence of middle and low income people. So those who crow about the fairness of the Trump tax cuts need to be more informed about any and all aspects of unfairness thereof.
Trump has never filed personal bankruptcy.
Most people file the long form and that’s where it really hurts. Like paying 3 percent in union dues and being taxed for that money like you got it
TDS – Trump Derangement Syndrome leads it’s victims to say everything he does is “for the wealthy”. The fact that the “wealthy””can only deduct $10,000 in property taxes is a huge negative factor for them. That means they will pay even more in taxes than they already do. The people who think that the “wealthy” paying more in taxes will solve their problems are uninformed as to the amount the wealthy already pay – more than 85% of the taxes paid are pd. by the ‘wealthy”, . There aren’t enough wealthy people in th world to pay for what the socialists like Bernie Sanders are proposing. When they promise everything for everyone for free it is laughable. If you actually add up the cost of these “freebies” it soon becomes obvious that it’s an impossible to do that.
I have NEVER paid as much tax as I did this year. I work part-time and my husband is self-employed. You’d think we made well over 100K with what we had to pay this year. Bull on Trump and his obnoxious tax reforms. We got SCREWED!!!
As a married but separated male – 2018 taxes and current income tax withholdings have literally slammed me! In fact, almost $300 is being taken weekly out of my earnings! I bring home a whopping $640. There is NO “caution” there; more like a “red flag”! Thank you Putin…
as objectively as possible, we lost over 3,000 to our fixed, retirement income
Since the tax changes, we have had to pay. Since we retired 10 yrs ago, the last two years we have had to pay. Definitely benefits the wealthy.
The largest problem I see is where the standard deduction was increased, it minimizes the chance of being able to itemize. In my state (Maryland) if you don’t itemize on Federal then you cannot itemize on state and the standard deduction for the state is very small.
My accountant warned me my taxes would be higher and he was right.
Just another way that the middle class spends more and gets less. When will this end?
Seriously….this is a big plus for ALL levels…I. retired widow,lost all in market crash…live on Social security,pay same for gro series, gas, all utilities, rent, car insurance, get nothing from state and county so I’ve worked over 50 yrs a x can say objectively…It IS good for ALL…
So you mind getting by … while the wealthy get extra tax breaks? I am darned irritated that my grands dont get all the nice perks in their school while the wealthy schools get extras.
What you just said is BS!! The deductions that are no LONGER ALLOWED are typically taken by the RICH!! Everything else HELPS THE MIDDLE CLASS!! READ IT AGAIN
Never
That is not true! The new tax laws help everyone but maybe not the wealthy so stop
lying to the public.
What happens 6 years from now when the middle class benefits drop off?
May you please explain. I’m trying to learn as much as I can about the new tax changes.
No shit. Thanks Trump.
Marvin Harris You are so very right
Incorrect Marvin Harris. I that what pelosi told you?
THAT REALLY SUCKS –
WHAT BUSINESS ITEMS CAN YOU YOU DEDUCT?
THAT REALLY SUCKS –
WHAT CAN BE PERSONALLY DEDUCTED IF A PERSON DOESN’T HAVE ANY KIDS?
WHAT CAN BE DEDUCTED IN THE PREPARATION OF THEIR TAXES?
CAN POSTAGE; ITEMS BROUGHT TO DO THE TAXES – ENVELOPES, TRAVEL TO IRS / STATE IRS OFFICES TO GET FORMS, MILEAGE TO POSTOFFICE TO MAIL THE FORM?
Nothin
SO WHAT CAN YOU DEDUCT WHEN YOU GO TO COURT TO PROTECT YOURSELF AGAINST CHARGES BROUGHT UP AGAINST YOU?
I AGREE WITH WHAT MR HARRIS WROTE ABOUT HOW THE NEW TAX LAWS FAVOR THE RICH AND MAKING THE MIDDLE AND LOWER CLASS CITIZENS IN THIS COUNTRY TO FOOT THE BILL TO PROVIDE SERVICES AND COVERAGES OF PROGRAMS WE NOW AND NEW PASSAGES PROGRAMS –
With ya on that!! One need only visit a couple schools in different areas to visualize the impact … trump aint for the working man … cuz trump dont know what working man / woman is !!! He lives too far above.
im deaf ok i leave post office of ill i recevied ssd check last 1992 to now i still pay fed tax i owe irs 10,000 i did chapter 7 now i owe irs 6,000 from dec 2012 to now why i pay fed tax im very ill im 66 yrs old im diabetes and heart attack i spend lot money for see dr pill my good freind all work post office all retired i ask them did u pay fed tax all say no why me why im ill damn tell fed stop bother me irs owe me cuz im ill damn it help me thank phil
Something must be wrong because if you have to pay in taxes on your ssd check then you must be getting a large amount of money each month!? My father is retired and lives only off of SS and he does have to pay in taxes..not yet anyways. You might want to check with an account. I’m not against you because I’m in the same boat as millions of other hard working American.
I have paid on my social security benefits since age 62, every month
Nuccio, you must either get a big 32.000 or more check to still paying income tax, my husband and paid large social security tax and worked for over 40 years and now receive small SSI checks. He is gone and I live on this SSI check but I am exempt from federal income tax, still have to pay all the other taxes.
Paying Taxes is an legal way for the Government to screw us Americans. When taxes first appeared, it was supposed to be a volunteer venture, but the Government wants it all. We pay all these taxes and we can’t even spend one night in the White House.
We live in a country that has the strongest military, the infrastructure we do have, social programs that help people from 1 to 100+. Too many examples of how we live in the best country in world. We are who we are because people before us paid their taxes.
The new tax laws benefits the middle class making 75,000 or less annually, because the standard deductions is very high(24,000). Before they could not itemize as much or at all. They did not have enough income to gain from itemizing. So the very wealthy do not benefit much because they have to itemize much more than $24,000, which is very difficult. and if they do they have to pay taxes at a higher bracket.
The well-to-do are usually self-employed they have so many deductions that can be hundreds of thousands they will do okay. Everything they do for the company is a write off all of their expenses are write off, usually a business office rent insurance utilities plenty of write-offs and they should.
Remember ALL: The Trump dotard paid $750.00 in taxes in one year lately. Sound like a great deal IF YOUR RICH enough to have the deductions. Taxes have always been skewed towards the RICH!
Sounds like most of the changes apply to people who own businesses, can afford to invest, or can buy $750,000 homes. I don’t know how the change to the personal deductions will affect families with kids, but only 2 of them will affect me as a retiree.
It’s ALL for the rich. the IRS and ALL thier political buddies that make up the laws on taxes need to be disbanned and investigated. because they don’t give a crap about the people, thier own pockets are all they care about.
I agree with Chuck Hansen I am a senior and still working full time. The tax law screws me on any refund. Sad
These new things that are now not deductible SUCK
I agree seems like all the eliminated deductions are the one a middle class person would use often not something that would affect the rich or high salary persons. Im middle class and are not saving anything on the contrary the personal deductions for dependents has really hurt me and my AGI is under $60,000.
This amounts to double taxation. The beneficiary of the settlement pays tax on the money going to the lawyer, and then the lawyer pays income tax on the money received.
Right you are Lance, double taxation USED to be a no-no, but I guess Trump needs more cash for his trysts.
The mystery of America is why does any person making less than $ 500,000 a year vote for the Republican Party candidates. Their record of economic recessions and depressions in the past century ought to convince an educated voter.
Intelligence has nothing to do with “Smarts” or “Common Sense”. I have a daughter that fit this mold – highly intelligent, but her lack of common sense is apparent that it’s often humorous! Regardless of political party affiliation or interest, the tax changes are available for anyone to read. For those of you who are spouting your opinion, it is an UNQUALIFIED opinion until your have read the current tax laws and also understand them. Until you do so, you are free to state your opinion, but only the unknowledgeable, immature, and insecure try to pawn their limited knowledge and comprehension off to others as authoritative fact.
Truth sometimes hurts – DEAL WITH IT!
If you think for one minute that these new tax laws is out to help the middle class down to the lower class Americans, than there is something wrong with you. Just alone changing the exemption status messes over the two class mention above. The rich do not worry about these deduction because they itemize and find a loophole somewhere else. The other is you receive partial payment on something, but you are required to pay taxes on the gross amount. Well my brothers and sisters the rich don’t do a lot of suing they handle there problems an other way. Well I hate to type it, but we get what we deserve because some of us put these clowns in office with out even reading up on there intentions. How do a man which never was in charge of a library book reading club or a man who stated that he could kill anyone in the middle of Times Square and still be voted in as President and it happen. It time for some of us to own up to our mistakes. Now here is a question, How many other things has been change or going to be change before he is out of office?
James, I am elderly person on social security and I’ve always paid my taxes. The difference between self-employed and a person like us that fights people that will hire us are both in the same boat it’s a self-employed has to have enough money to function to make a livelihood for himself your employer Had to have a lot of money to operate a large business where he needs help that’s where you come in as an employee you have any idea the expense that your boss is covering just so you will have a job, your boss is a self-employed person that hires help and the others are self-employed and do not need any help does that make sense to you it takes a lot of money to make money.
Who or whom do I contact? I have not received my refund from 2017. I need the money! Please acknowledge… thank you… Guy Worsham
1/12/2019
I agree some of the changes are confusing. I will have to study them more and hope to understand whether my husband and I filing jointly will be the best route to take. We are retired seniors and have very few deductions.
Great for Trump taking on the IRS. No one takes responsibility for their own taxes all they do is Whine that government is not taking care of them,! Go to any other foreign country and file your taxes. What a shock!
I’m a truck driver and it looks like I’ll be paying at least $4,000. more, or getting that much less back this year thanks to Trump taking away the per diem deduction.my wife is a teacher she’s going to lose too! I’m hoping this is not correct but nothing looks good for us regular folks under Trump’s new Fascist regime.
You are about to learn what aFascist Regime really is! You haven’t seen one yet, but is going to quickly change!
Is anyone else tired of hearing crap about the president elected,it’s the career politicians that have screwed you.
It was not a secret. We as Americans have become complacent and are giving away our rights. We need to start paying attention! We don’t look for the whole story we are just reading the punch line without gathering all the details!
Read the WHOLE message not just the tag line. The deductions we combined making it almost impossible to get any extra deductions by filing a schedule A. You got a dollar more on you paycheck, but you are going to lose more than that on your tax refund.
The elimination of deducting state income taxes paid, property taxes capped at 10,000 per year will hurt many. I don’t believe for one minute these tax cuts will help the working class of America I will have a better idea when I complete my taxes, right now, I’m not convinced that it’s anything more than a wealthy
The people this really hurts is anyone in middle to lower classes who have 2 or more children because the $1000 gift in child credit will not make up for the loss of the personal deduction even with the increase of the standard deduction. So the more children you have the more screwed you are. This will increase the number of people going on welfare and food stamps. Secondly the self employed individual who scraps buy day to day will effectively have to shut down his business or raise his prices so high he will not get work due to the loss of the personal business expense. Now I can understand the business meal and entertainment being eliminated due to abuse by big business but the mileage, meal cost, vehicle expense and work clothes deduction for the private business owner will be extremely painful. LAST but not lest is the elimination of the interest on home loans. With this a new home will effectively cost about 3 times more than the selling price. God bless our government oops can’t say that either. Good Luck.
Just from reading an overview of the changes, it seems that contract workers are going to be hit pretty hard. I am a musician and do freelance work all around. In the past, I have been able to deduct all the driving I do, as well as all the meals on the road, to and from rehearsals and performances. Seems like this is going to change. Also my home office (which I use to practice my music, and write out music, as well as computer work to network with people) will no longer be deductible? Wondering if anyone out there knows how this might affect contract workers like me?
Also on a side note, wondering why there isn’t just a blanket 20% of income for taxes with no itemizing and a larger standard deduction. Seems that might level the playing field from the very wealthy down to the poor. I know it might not seem fair to people with a lot of income to have to pay so much, but I’d ask you to think about something….
Person A works 40 hours a week cleaning a school and makes ~ $30,000 a year
Person B works 40 hours a week managing a company and makes ~$300,000 a year.
Person A would have to work 10 years to earn what person B earned in 1 year. I think that with good sized standard deduction, and each person paying the same percentage of their income, that could level the field at least a little. Would love to hear peoples thoughts on that.
Thanks!
Katie, I agree with a level tax for all. Maybe 10% instead of 20%, but level seems fair.
To my way of thinking, your suggestion regarding all taxpayers paying the same percentage makes a lot of sense.
The government should be for all, so all should have an equal requirement to support it, via taxes. (Where did the idea ever come from that the government should decide that if you have more money, you should pay more taxes ?)
Thus, if each taxpayer paid, say, 20%, that would be more just. Just saying !
You will most likely be able to tell how good the changes were for the middle & lower income levels by next tax time after Biden, Harris, Pelosi, & Shumer get through with their changes!
I was told by the tax guy that did my taxes that I couldn’t get a child tax credit for my Daughther who turnrd 17 in November. Is that true according to the new Trump law.
A person must pay taxes on 85 percent of his/her Social Security amount reveived.
The percentage depends on your AGI (Adjusted Gross Income).
If you are paying 85% on your Social Security you are making a lot of income outside of SS. To start with you only figure 50% to add to your income & only after your GAI exceeds a certain amount do you pay any tax on it.
Most independent tax analysts have determined that 80-90% of the benefits of this tax plan favor the rich. If the members of the cheeto cult want to be delusional, they should keep it to themselves and stop spewing their propaganda. They, just like their Fuhrer, are liars.
I appreciated the introduction to basic taxation vocabulary (deduction and exemption, for example).
I am a senior citizen and my medical bills and prescription costs are astronomical. Raising the medical deduction to 10% made it impossible for me to itemize and thus raised my taxes.
Marie, I disagree. Trump should have left well enough alone. I lost over $4,000 because of the change to benefit the wealthy. I barely make ends meet. Unfortunately, it’s now about the same for most middle class to lower income families. It’s really sad that they didn’t care enough about the struggle that people were going through when they came up with act of a very selfish tax reform!!
It doesn’t often benefit joint filers. They have raised the indexing to make up for part of that. Now everybody gets to deduct for charitable giving to $24,000 even if they gave only $1. My taxes went up 12% under the new rule without an increase in salary.