Effective with the 2018 tax year, the Tax Cut and Jobs Act (ACT) reduced the allowable deductions for individual taxpayers who itemized their deductions on Schedule A. (Note: If you did not itemize but claimed the standard deduction, the ACT will definitely benefit you). One of the changes that will reduce allowable itemized deductions is the repeal of the 2% miscellaneous tax deduction. These deductions were referred to as the 2% miscellaneous tax deductions because the taxpayer was only allowed a deductions if such deductions exceeded 2% of the reported adjusted gross income (AGI) shown on the taxpayer’s Form 1040.
The typical miscellaneous 2% tax deductions were [Read more…] about 2% MISCELLANEOUS TAX DEDUCTIONS – WILL YOUR TAXES INCREASE?