Tax Odds & Ends

A few tax odds and ends for you to be aware have changed.

Contributions to Higher Educational Institutions

For contributions made in tax years after 2017, no charitable deduction is allowed for any payment to an institution of higher education in exchange for which the taxpayer receives the right to buy tickets or seating at an athletic event.

Medical Expenses

For 2018, Form 1040 Schedule A itemizers could deduct medical expenses to the extent they exceeded 7.5% of adjusted gross income. For 2019, the floor increases to 10% of adjusted gross income before medical expenses are allowed as a deduction.

Moving Expenses

The moving expense deduction is suspended from 2018 through 2025, except for certain moves by members of the armed forces.

Property Taxes Form 1040 Schedule A

From 2018 through 2025, the annual deduction for state and local property income and sales taxes is limited to $10,000. The IRS has proposed regulations that eliminate the benefit of certain “workarounds” that some high tax states have implemented in an attempt to avoid the $10,000 limitation for residents of their state.

Personal Casualty and Theft Losses

The deduction for personal casualty and theft losses is generally suspended from 2018 through 2025, except for:

  • Personal casualty losses incurred in a federally declared disaster; and
  • Non-disaster personal casualty loss up to the extent of personal casualty gains.