Say goodbye to most deductions. Almost all itemized deductions are going away, except for three. The final House bill keeps the deductions for charitable donations, property taxes up to $10,000 a year and the mortgage interest deduction. The mortgage interest deduction would be capped at $500,000 for mortgages (down from $1 million now).
About 30 percent of filers itemize. Most of the people who itemize claim the state and local tax deduction (SALT) where they deduct their state and local sales, income and property taxes. Under the House bill, only the property deduction would remain. This hurts people living in high-tax (and often blue) states like New Jersey, New York and California. Several GOP representatives from these states plan to vote no on the bill in protest.
The adoption credit stays. The 401(k) exemption stays. But . . .
Say goodbye to the tax credits for plug-in motor vehicles. It gets repealed in 2018.
Say goodbye to the deduction for medical expenses. It goes away in 2018.
Say goodbye to being able to write off the costs of your tax preparer. That goes away in 2018.
Say goodbye to the deduction for moving expenses. It goes away in 2018, except for members of the military.
Say goodbye to most tax benefits for college. At the moment, low and middle income Americans can deduct up to $2,500 a year in student loan interest. That benefit would go away in 2018. In addition, grad students who get tuition waivers because they teach or do research would now have to pay income tax on the waiver, a big change. For students currently in school, the American Opportunity Tax Credit would remain, which allows a $2,000 credit for higher education expenses.
https://www.msn.com/en-us/news/politics/the-house-just-passed-its-big-tax-bill-heres-what-is-in-it/ar-BBF3j0t?li=BBmkt5R&ocid=spartanntp
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