Certain tax deductions and credits are soon to be extinct. Individuals will need to go over tax returns before filing to the IRS. The Tax Cuts and Jobs Act which became effective early this year doubled standard deductions, erased personal exemptions, and overhauled the existing tax code.
The 2017 tax year is the last year when individuals will be filing their tax returns under the old tax law. This means that it is the last time for some specific tax breaks.
This being said, a number of tax deductions from the old tax code may return in the year 2025, according to speculations. The Congress will be determining whether or not these provisions will be extended.
Unreimbursed employee expenses, job search expenses, and other expenses are soon to be extinct.
Recently, the Congress extended a series of tax breaks that was about to expire in 2016.
Important tax breaks one should grab while it lasts
2018 is the last year in which individuals can claim deductions for personal losses sustained due to natural disasters, fires, and accidents in a given year.
On personal property, the total losses should exceed 10 percent of the gross income.
From 2018, personal losses can be claimed only in case a disaster is declared by the President. These provisions will last until 2025.
Interests on home equity loans up to $100,000 can be deducted for the last time in 2017.
Interest deductions will have new limits for the 2018 tax year.
The new limits in 2018 state that for interest deductions, the home equity loan should not be used for buying or improving a home.
Mortgage insurance premiums that were set to expire in 2016 have been renewed by the Congress for the 2017 tax returns. Itemized deductions on Schedule A are eligible for such premiums.
Earlier, property taxes could be reduced for all homes owned by an individual and not just on the principal residence. In 2018, new state and local taxes will affect property tax deductions.
If you happen to be the owner of multiple homes, you are likely to feel the full effect of such limitations.
The full value of property taxes can only be claimed during the 2017 tax year.
Tuition, books, and supplies can be deducted for college students. The amount extends up to $4,000 and is not inclusive of boarding and lodging.