But Congress has a problem: The Tax Cuts and Jobs Act would make itemized individual income tax deductions irrelevant for more than 90 percent of US households. As itemized deductions fade, at least for the masses, look for lawmakers to turn to tax credits and above-the-line deductions, which people can take even without itemizing. The end of itemizingBefore we look at them, a quick reminder about what the TCJA would do to itemized deductions. The Senate Finance panel, by contrast, eliminates one big one—the state and local tax (SALT) deduction—and a few smaller ones. As a result, creating modest new itemized deductions would be much less attractive than it is today.

Source: Forbes November 28, 2017 20:15 UTC