Keith from Insight Tax covers three itemized deduction changes: the SALT cap drops to $10,000, charitable contributions still require receipts, and medical expenses are now deductible above 7.5% of income instead of 10%.
Hey everyone, this is Keith here at Insight Tax again. I wanted to make another video talking more about the changes to itemized tax deductions. The first one I want to talk about is state and local income tax and property tax. Before the tax law change, we could deduct your state and local income tax as itemized deductions without any limit. After the tax law change, unfortunately, that has been reduced to $10,000. So those of you in high income tax states could potentially have a very big impact on your taxes here, or anyone who's used to paying more than $10,000 in state income tax, you're not going to be able to deduct any more than that unfortunately. The next one I want to talk about is charitable contributions. There haven't really been many changes with charitable contributions, but as always I recommend keeping your receipts For all charitable contributions so that we can make sure and get a write-off for those. The next one is medical expenses. Before the tax law change, you were only able to deduct medical expenses that exceeded 10% of your income. After the tax law change, that limit has been reduced to 7.5%. So, those of you with high medical expenses are going to be able to deduct even more of those. So, some bad news, some good news, but as with any tax law changes, if you have any questions or concerns, feel free to give us a call and we'll be happy to help you.
