Write-offs

Often taxpayers do not understand their

1. standard and itemized deductions and

2. their marginal tax bracket.

For example, a taxpayer pays mortgage interest and state taxes and makes charitable contributions that sum to an amount just below the standard deduction.  The taxpayer would be better off shifting the charitable contributions into one particular year so itemized deductions can be claimed for that year.

The importance of understanding the marginal tax bracket is you want to have your larger itemized deductions in years when you are in the 32% marginal tax bracket versus the 22% marginal tax bracket.

Beginning in 2018, unreimbursed employee expenses for W-2 employees are no longer eligible for a tax deduction on your federal tax return. The Tax Cuts and Jobs Act of 2017 suspended the deductions for most workers from 2018 to 2025. 

If you are in the professions/situations below, you still can claim  the job-related expenses deduction:

• Armed Forces reservist
• Qualified performing artist
• Fee-basis state or local government official
• You're disabled and have impairment-related expenses

Additionally, you may still deduct job-related expenses in your state.