- Deductions-Â Standard deductions are nearly doubled to $12,000 for single filers and $24,000 for married joint filers. The code still says dependents can claim a standard deception limited to the greater of $1,050 or earned income plus $350.
- Kiddie Tax– Unearned income of children under age 19 (or 24 for full-time students) above a threshold of $2,100 is now taxed at a special rate for estates and trusts, rather than the parents’ top tax rate.
- Family credit– If you have dependents who aren’t children under age 17 (an thus eligible for the Child Tax Credit) you can now claim $500 for each dependent member of your household for whom you provide more than half of their financial support.
- Medical Expenses– You can deduct medical expenses higher than 7.5 percent of your adjusted gross income as an itemized deduction. You can claim this for medical expenses you pay for a relative even if they are not a dependent as long as you provide more than half of their financial support.
Deductions that are disappearing
While many deductions are remaining under the new tax law, there are several that did not survive. Gone for the 2018 tax year are the deductions for:
- Casualty and theft losses (except those attributable to a federally declared disaster)
- Unreimbursed employee expenses
- Other miscellaneous deductions previously subject to the 2% AGI cap
- Moving expenses
- Employer-subsidized parking and transportation reimbursement
