Last Week, Senate Republicans unveiled their tax bill. It differs from the prior week’s version in the House of Representatives on a number of important issues. For instance, the Senate plan would completely eliminate the ability to deduct state and local taxes; there is no exception for up to $10,000 in property taxes each year, as there is in the House bill.
It’s too soon to predict what, if anything, will come of all this. In the coming days and weeks, we will see which proposals survive as Congress moves toward possible full votes on these or modified bills. In the meantime, here’s a guide to some of the changes proposed regarding consumer medical expenses and deductions:
What’s in place now:
For the moment, you can deduct out-of-pocket medical expenses that exceed 10 percent of your adjusted gross income (but not the expenses that amount to the first 10 percent). This is particularly useful for elderly people and others with lower incomes who need regular assistance and care.
What the House proposed:
The House wants to do away with the deduction in 2018.
What the Senate proposed:
The Senate would keep the deduction.