Tax deductions that are going away in 2018


As a new mom of a 13-month-old son, Jaqueline Culley will have some added cash when she claims her son Owen on next year's tax return.

When President Donald Trump signed into law a new tax plan, the child tax credit increased from $1,000 to $2,000 per child under age 17. In addition, $1,400 of the credit is deductible.

For this new mom, she's already thinking about how to spend the added cash.

"Hopefully I can maybe get him into preschool programs and some recreational programs, music classes things like that for him which can be very expensive," she says.

While parents with children are winners under the new tax plan, small business owners are not, says Tax attorney Christina Rosebrough-Zody.

"Some of our biggest losers are our small business owners," she says.

Many of the deductions small businesses once enjoyed are gone. Starting next year, all profits from small business will be taxed for FICA and Medicare, which was not taxed in 2017.

But there is a silver lining for mom and pop shops.

Small business owners will be able to take a 20 percent deduction off of their taxes.

Taxes for big business will also drop under the new tax plan.

Corporate America will see their tax bracket drop from 35 percent to 21 percent. Here's something many people won't like about the new tax reform. If you work from home, you can no longer deduct your home office or travel. Those deductions are gone.

And for those of you who buy season tickets to OSU games or other college sports, the days of deducting those tickets are over.

Some homeowners will get a chill from this new tax plan. If you took out a home equity loan, you can longer deduct the interest.