Tax Related

Prepare to Lose Some Tax Deductions Under Proposed Budget

Written by Steve Rhode

We hear so much about a big tax cut is coming to help middle-class American’s but I wonder if anyone is actually aware of the deductions that are really slated to be eliminated. The ones on the chopping block certainly would impact many of my readers. It is uncertain if the loss of these deductions would be offset by other gains. If not, the little guy gets screwed again.

1. Limits the State and Local Tax deduction, which imposes an unfair double tax on middle class families and undermines the ability of state and local governments to fund priorities, such as law enforcement and education.

2. Limits the mortgage interest deduction used by homeowners.

3. Eliminates the student loan deduction, which makes it harder for Americans to afford higher education.

4. Eliminates the medical expense deduction, which Americans with disabilities, long-term care needs, and high dental expenses rely on to afford care.

5. Eliminates the deduction for moving expenses to take a new job and taxing employer provided moving expenses.

6. Eliminates the adoption tax credit, which allows taxpayers to claim a credit of $13,570 per eligible child they adopt.

7. Eliminates a deduction for teachers that helps them purchase supplies for their classroom.

8. Eliminates the casualty loss deduction, which makes it harder for Americans to recover from damage, destruction, or loss of property due to sudden events, such as a flood, hurricane, tornado, or fire.

9. Eliminates the deduction for dependent care assistance, making it harder for families to afford day care, nursery school, or care for aging parents.

10.Eliminates personal exemptions, which Americans can currently deduct for themselves, a
spouse, and dependents and grows with the size of a family.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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