10 Facts About 2018 Income Tax Changes

4. New Caps on Itemized Deductions

• State and local taxes can still be itemized for deduction. However, the potential deduction amount cannot exceed $10,000.
• Interest on mortgages for primary and secondary residences is still deductible. However, the total loan must not exceed $750,000. Otherwise, the filer cannot apply the deduction.
• Medical expenses are deductible if they are greater than 7.5% of someone's income. This is the same as the available deduction for 2017. In years previous to 2017, the potential deduction was only available if medical care expenses were more than 10% of an individual's income.

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