The New 1040 Schedule A

        The IRS is preparing its revised Form 1040 Schedule A for taxpayers to file by next April. In that new form medical expenses will continue to be deductible which exceed 7.5% of adjusted gross income. The deduction for state and local taxes is limited to $10,000 for Schedule A itemizers ($5000 if filing separately). Charitable contributions continue to be deductible. Personal casualty losses have been eliminated except if in a presidential declared federal disaster area. All of the personal miscellaneous itemized deductions which were subject to 2% adjusted gross income have been eliminated. The result of all this is that fewer taxpayers will be itemizing deductions for tax year 2018. The IRS has also made clear that all attempts by the individual states to circumvent the SALT limitation through the use of charitable deductions and other contrivances will not be allowed. The many high tax states have not at this time given up on this issue.