There was a large subgroup of people who were able to itemize and deduct Miscellaneous Itemized deduction on their Schedule A after the expenses surpassed 2% of Adjusted Gross Income (AGI). All of these expenses were eliminated as deductible under the new tax law.
A number of these deductions were directed towards people who wear uniforms, such as the military, police and fire department personnel. All of these people are required to wear uniforms that are not suitable for everyday use. These uniforms are still a requirement of the job, but they are no longer a deductible expense.
Other items not longer deductible:
- Tax preparation fees
- Investment expenses (Broker fees)
- Union dues
- License and regulatory fees
- Rural mail carrier vehicle expenses
- Union dues
- Hobby expenses
Granted this is just a sampling, but the impact on certain groups of people is tremendous. Obviously a large number of our clients are impacted by the first two on the list. But we do a number of military returns are part of the ICPAS – Military program; also two of us in the office also have active military personnel as well. So we see the impact on those who service first hand.