Beginning tax year 2018, the IRS has made changes to the Federal Schedule A:

Whats New:

Overall limitation on itemized deductions no longer applies.

There is no longer an overall limitation on itemized deductions based on your adjusted gross income; however, there may be other limitations that impact the amount of itemized deductions you can claim on Schedule A.

Medical and Dental Expenses:

Only the part of Medical/Dental expenses that exceeds 7.5% of your Federal AGI is deductible (All Taxpayers).

Taxes You Paid (State/Local/Foreign) :

There is a limit to the amount of taxes that can be reported. (The system automatically carries over the correct amount).

• Married Filing Joint Filers, Head of Household, Qualified Widower - $10,000
• Single, Married Filing Separately - $5,000

No deduction for Foreign Taxes Paid for Real Estate.

You can no longer deduct foreign taxes you paid on real estate.

Limitation on deduction for Home Mortgage Interest.

You may be able to deduct mortgage interest only on the first $750,000 ($375,000 if married filing separately) of indebtedness. Higher limitations apply if you are deducting mortgage interest from indebtedness incurred on or before December 15, 2017.

No deduction for Home Equity Loan Interest.

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 improve your home.

No Miscellaneous Itemized Deductions allowed.

You can no longer claim any miscellaneous itemized deductions, including the deduction for unreimbursed job expenses. Miscellaneous itemized deductions are those deductions that would have been subject to the 2 percent of adjusted gross income limitation.

Limitation on the deduction for Casualty and Theft Losses

You can no longer deduct a personal casualty or theft loss unless the loss is from a federally declared disaster.

Higher limitation threshold for certain Charitable Contributions.

For most gifts by cash or check, the total amount of such contributions that can be deducted is now limited to 60% of your contributions base, instead of 50%. See Pub. 526 for more information

Expired deduction for Mortgage Insurance Premiums

Mortgage Insurance Premiums can no longer be included on the tax return. Congress did not extend this for tax year 2018.

Standard Mileage Rates.

• The standard mileage rate allowed for operating expenses for a car when you use it for medical reasons increased to 18 cents a mile.
• The 2018 rate for use of your vehicle to do volunteer work for certain charitable organizations remains at 14 cents a mile

IMPORTANT

• No - By default the system will carryover the larger deduction (Standard/Itemized).
• Yes - Only uses the Itemized Deduction. The Standard Deduction will not be checked by system.