For 2018, the standard deduction amounts will increase from: $6,500 for individuals, $9,550 for heads of households (HOH), and $13,000 for married couples filing jointly - to $12,000 for individuals, $18,000 for HOH, and $24,000 for married couples filing jointly.
While most individuals take advantage of the standard deduction, for those individuals who itemize on Schedule A, many deductions have been reduced or suspended.
The deduction for job expenses and miscellaneous deductions subject to 2% minimum, such as certain professional fees, investment expenses, and unreimbursed employee business expenses, is suspended between 2018 and 2025.
This includes expenses that are incurred on the job that are not reimbursed by an employer, like tools and supplies; required uniforms not suitable for ordinary wear; dues and subscriptions; and job search expenses. These expenses also include unreimbursed travel and mileage, as well as the home office deduction.
You are no longer able to take an itemized deduction for the following items as unreimbursed employee expenses;
- Depreciation on a computer your employer requires you to use in your work.
- Dues to a chamber of commerce if membership helps you do your job.
- Dues to professional societies.
- Educator expenses.
- Home office or part of your home used regularly and exclusively in your work.
- Licenses and regulatory fees.
- Tools and supplies used in your work.
- Travel, transportation, meals, entertainment, gifts, and local lodging related to your work.
- Union dues and expenses.
- Work clothes and uniforms if required and not suitable for everyday use.
Please note: the elimination of unreimbursed employee expenses only affects taxpayers who claim an employee-related deduction on Schedule A. If you are a business owner and file a Schedule C, your business-related deductions are not affected by the elimination of Schedule A deductions.