WASHINGTON — Taxpayers who haven’t had the time to brush up on the changes that came with the new tax plan may be in for a surprise.
Many of the deductions taxpayers have turned to in years past are gone.
“It’s the largest tax law change since 1986,” according to Bryan Lake of Shoreline Tax & Accounting Services in D.C.
Among the missing deductions this year: Personal exemptions. This year instead, standard deductions were doubled. For a single taxpayer the amount is $12,000. The standard deduction for a married couple is $24,000 and those who file as the head of a household is $18,000.
This tax filing season, filers no longer have unlimited state and local tax deductions. Those deductions are now capped at $10,000.
“That’s huge for people around here whose real estate taxes and state taxes paid, exceed that $10,000 limit,” Lake said.
The rules have also changed when it comes to taking a deduction on interest paid on home equity loans.
“Unless the proceeds from that home equity loan are used to improve your principal residence, you can’t claim that interest paid on that home equity loan,” Lake said.
Also gone this year are many miscellaneous itemized deductions, including those for unreimbursed work-related expenses and tax preparation costs.
Moving expenses are also no longer deductible unless the person moving is a member of the armed forces who is required to move.