For more about the expanded CTC, click here. AGI phaseouts are not indexed for inflation and remain at $400,000 for married taxpayers filing jointly and more than $200,000 for all other taxpayers. The child tax credit has been expanded to $2,000 per qualifying child and is refundable up to $1,400, subject to phaseouts there is a temporary $500 nonrefundable credit for other qualifying dependents. Here's a look at a few of the most popular:
Some additional tax credits and deductions have been adjusted for 2020. There are no Pease limitations in 2020.Job Expenses and Miscellaneous Deductions subject to 2% floor. Miscellaneous deductions, including unreimbursed employee expenses and tax preparation expenses, which exceed 2% of your AGI have been eliminated.For more on casualty losses after a disaster, click here. Casualty and Theft Losses. The deduction for personal casualty and theft losses has been repealed except for losses attributable to a federal disaster area.Charitable Donations. As a result of tax reform, the percentage limit for charitable cash donations to public charities increased from 50% to 60% in 2018 and will remain at 60% for 2o20.For more on mortgage interest under the TCJA, click here.
Home Mortgage Interest. You may only deduct interest on acquisition indebtedness-your mortgage used to buy, build or improve your home-up to $750,000, or $375,000 for married taxpayers filing separately.
State and Local Taxes. Deductions for state and local sales, income, and property taxes remain in place and are limited to a combined total of $10,000, or $5,000 for married taxpayers filing separately.Medical and Dental Expenses. The “floor” for medical and dental expenses is 7.5% in 2020, which means you can only deduct those expenses which exceed 7.5% of your AGI.There are changes to itemized deductions found on Schedule A, including:
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