What tax deductions are no longer allowed?

The main deductions no longer allowed for most people are unreimbursed employee expenses, tax preparation fees, and investment-related fees, largely suspended by the 2017 Tax Cuts and Jobs Act (TCJA) through 2025, with some made permanent by the 2025 One Big Beautiful Bill Act (OBBBA). Alimony paid is also nondeductible for new agreements after 2018, and personal exemptions were eliminated.

How does the new $6000 tax deduction work?

The "$6000 deduction" refers to a new, temporary federal tax break for seniors (age 65+) from the 2025-2028 tax years, allowing an extra $6,000 deduction (or $12,000 for joint filers) on top of existing deductions to lower taxable income, provided income stays below phase-out limits (e.g., MAGI under $75k single / $150k joint) and you file a new Schedule 1-A. It's claimed by entering it on the new form, reducing your overall tax bill, and is available whether you take the standard deduction or itemize. 

Why can't I itemize deductions anymore?

The TCJA eliminated or restricted many itemized deductions for 2018 through 2025. This, together with a higher standard deduction, reduced the number of taxpayers who itemize deductions. In 2017, 31 percent of all individual income tax returns had itemized deductions, compared with just 8 percent in 2022.

What is the $2500 expense rule?

The $2,500 expense rule refers to the IRS's De Minimis Safe Harbor Election, allowing small businesses and property owners to immediately deduct the full cost of qualifying tangible property (like equipment, furniture, or improvements) up to $2,500 per item/invoice, instead of capitalizing and depreciating it over time, providing a faster tax benefit; businesses with an Applicable Financial Statement (AFS) have a higher $5,000 threshold, and the election must be made annually by attaching a statement to your tax return. 

What deductions are not allowed in the new tax regime?

Deductions Excluded from Business Income Under the New Regime

• Additional depreciation (Section 32)
• Investment allowance (Section 32AD)
• Sector-specific deductions (Sections 33AB and 33ABA)
• Expenses on scientific research (Section 35)
• Capital expenditure deductions (Section 35AD)
• SEZ unit exemption (Section 10AA)

How to Turn Everyday Expenses Into Tax Write Offs

What deductions are still allowed?

Some of the most common federal tax deductions include:

• Retirement contributions (IRA, 401(k), SEP IRA)
• Student loan interest.
• Charitable donations.
• Mortgage interest.
• State and local taxes (SALT)
• Medical expenses over 7.5% of your AGI.
• Home office expenses for self-employed taxpayers.
• Health Savings Account contributions.

What exemptions can we take in the new tax regime?

New Tax Regime Exemption List

• Transport Allowances w.r.t. Person with Disabilities (PwD)
• Conveyance Allowance.
• Travel/ Tour/ Transfer Compensation.
• Perquisites for Official Purposes.
• Exemptions for Voluntary Retirement Scheme u/ Section 10(10C)
• Gratuity Amount u/ Section 10(10)
• Leave Encashment u/ Section 10(10AA)

What is the $3000 loss rule?

The IRS allows taxpayers to deduct up to $3,000 of realized investment losses ($1,500 if married filing separately) against ordinary income each year. This deduction applies only to losses in taxable investment accounts and must be realized by December 31st to count for that tax year.

Can I deduct capital improvements on my taxes?

According to the IRS, capital improvements aren't immediately tax deductible but can affect the taxes you pay when you sell the property. This is why keeping receipts and documentation is so important for homeowners. Make sure you have paper and electronic copies.

Is there a limit for itemized deductions?

There is no overall limited dollar amount cap on itemized tax deductions on Schedule A as a whole. Taxpayers can fully itemize deductions without an overall maximum dollar limit on the total deductions claimed.

What is the most overlooked tax break?

The most overlooked tax breaks often involve credits for low-to-moderate income earners (like the Saver's Credit or EITC), out-of-pocket charitable costs (like car mileage), student loan interest, IRA/401(k) deductions, Child & Dependent Care Credit (especially if using an FSA), and the deduction for jury duty pay given to an employer, as people forget these specific situations or don't realize they qualify for extra benefits beyond standard deductions. The Retirement Savings Contributions Credit (Saver's Credit) is a top contender for being missed, offering up to $2,000 for eligible savers. 

What is the $600 rule in the IRS?

The IRS $600 rule refers to the reporting threshold for third-party payment networks (like Venmo, PayPal) for goods and services income, intended to phase in for tax years starting 2024, though its implementation has seen delays and adjustments; it was originally set to $600, then shifted to $5,000 for 2024, then $2,500 for 2025, with the final goal of $600 for 2026 and beyond, requiring payment apps to send a Form 1099-K for payments over that amount, but this only applies to business income, not personal transfers like gifts or shared expenses. 

What are the biggest tax mistakes people make?

The biggest tax mistakes people make involve simple errors like incorrect Social Security numbers, math errors, and missed signatures, as well as more significant oversights such as failing to claim all eligible credits/deductions, missing income (especially from investments or side gigs), and not filing or filing late, all leading to processing delays, penalties, or missed savings. Using tax software or a professional, double-checking all information, and understanding deadlines and credits are key to avoiding these common pitfalls. 

Is the $8000 tax refund still available?

An $8,000 tax refund isn't a single, universal program but likely refers to specific credits, most commonly the temporary, expanded Child and Dependent Care Credit for 2021 or the Earned Income Tax Credit (EITC), which can exceed $8,000 for large families in recent years (e.g., 2025/2026 tax years). While the 2021 expanded credit has passed, the EITC remains available and is a major source of large refunds for low-to-moderate income workers, with the maximum amount increasing annually. 

How much an hour is $70,000 a year after taxes?

$70,000 a year is about $33.65 per hour before taxes, but after federal, state (varies), and FICA taxes, your take-home hourly pay will likely be closer to $25 - $28 per hour, depending heavily on your location, filing status, and deductions, though using a reliable tax calculator with your specific details is best for accuracy. 

What is the Trump senior deduction?

Deduction for seniors (Section 70103)

Effective 2025 through 2028, individuals age 65 and older may claim an additional $6,000 deduction. This is in addition to the standard deduction for seniors available under existing law. Applies per eligible individual (or $12,000 for a married couple if both spouses qualify).

What house expenses can be written off?

You can deduct mortgage interest, property taxes (up to $10k), and points paid for a home loan, plus business-related expenses like the business portion of utilities or insurance if you have a qualified home office, while energy-efficient improvements might qualify for credits; however, most other home expenses like principal payments, general insurance, and repairs aren't deductible unless tied to a business or specific credit. 

Can you write off a new roof on your taxes?

Roof replacement is generally considered a capital improvement, meaning you can't deduct it from your tax return. However, if your home is a rental property, you can depreciate the cost over 27.5 years as a rental expense. 🔗 Learn more about rental property deductions on IRS.gov.

Are landscaping costs tax deductible?

The IRS allows property owners to claim landscaping expenses if they are necessary for upkeep or to enhance the property's rental value. Common deductible landscaping expenses include lawn maintenance, trimming trees, and planting greenery to improve the property's curb appeal.

What is the most capital loss you can claim?

The Internal Revenue Code allows taxpayers to claim a capital loss deduction from their annual capital gains. Capital loss deductions from regular income are limited to $3,000 a year. Losses over this limit can be carried forward and claimed in future tax years if you make use of a capital loss carryover.

How much capital gains tax will I pay on $200,000?

For a $200,000 long-term capital gain in 2025, the tax is likely 15%, totaling $30,000, if you're single and your total taxable income falls within the 15% bracket (above $48,350 up to $533,400), but could be higher if you also pay the extra 3.8% Net Investment Income Tax (NIIT) or if it's a short-term gain taxed as ordinary income. 

Is tax harvesting a good idea?

Tax-loss harvesting is advantageous for investors with taxable capital gains. This commonly occurs from portfolio adjustments like rebalancing or selling for profit.

How to avoid 40% tax?

To avoid high tax rates like 40%, you can legally lower your taxable income by maximizing contributions to retirement accounts (401(k), IRA, HSA), utilizing deductions and credits, deferring income to later years, investing in tax-advantaged accounts, harvesting tax losses, and making charitable donations, all strategies aimed at reducing your Adjusted Gross Income (AGI) and staying in lower brackets. 

What all deductions are not allowed in the new tax regime?

In new tax regime, Chapter-VIA deductions cannot be claimed, except deduction u/s 80CCD(2)/80CCH/80JJAA as per the provision of Section 115BAC of the Income Tax Act, 1961.

What are common tax deductions?

20 Common Tax Deductions: Examples for Your Next Tax Return

• State income or sales tax deduction.
• Property tax deduction.
• Student loan interest deduction.
• Home mortgage interest deduction.
• IRA deduction.
• Self-employed SEP, SIMPLE, and qualified plans deduction.
• Medical and dental expense deduction.