Most Common Tax Question – What Has Not Changed?

(Source: ObliviousInvestor.com) Here’s a non-exhaustive list of things that are essentially unchanged as a result of the new law. (I say “essentially” unchanged, because many of these deductions/credits/etc. involve dollar amounts that are inflation-adjusted each year. And, going forward, they will be adjusted based on chained CPI-U rather than CPI-U.)

  • The calculation that determines how much of your Social Security benefits are taxable
  • Retirement accounts (aside from the new inability to recharacterize — undo — a Roth conversion)
  • Cost basis tracking/reporting (i.e., the proposed change that would have forced people to use the FIFO method for identifying shares did not occur)
  • The step-up in cost basis that occurs when property is inherited
  • The 3.8% net investment income tax
  • The 0.9% additional Medicare tax for high earners
  • Medicare and Social Security taxes in general (including self-employment tax)
  • Health Savings Accounts (HSAs)
  • Deduction for self-employed health insurance
  • Deduction for student loan interest
  • Itemized deduction for charitable contributions
  • American Opportunity Credit
  • Lifetime Learning Credit
  • Child and dependent care credit (not to be confused with the child tax credit, which has changed, and which in some cases can now be claimed for dependents other than your children)
  • Retirement savings contribution credit
  • Premium tax credit
  • Earned income credit
  • Credit for purchasing a plug-in electric drive vehicle
  • Residential energy credit (for purchasing solar panels or a solar hot water heater for your home)