The loss of student loan and medical expense deductions

[MineralMan]

bothers me far more than the jumbo mortgage loan limit on deductions. The last thing affects only mortgages over $500,000. The others affect everyone and hurt people with lower incomes the most.

When I had $20,000 in medical expenses, that deduction saved my sorry ass, since I had paid off that amount already that year. The deduction kept me from being in trouble from not being able to pay my IRS taxes.

I've never had a jumbo mortgage. Few people I know have ever had one of those.

[The Velveteen Ocelot]

1. What the mortgage deduction elimination will hurt is the construction industry.

Mortgages over $500K aren't that unusual any more, at least in some parts of the country. I certainly have never had one and never will, but the home construction people are freaking out over this. Expensive McMansions are a big part of their business, and if they can't build those houses there go a whole bunch of jobs. The elimination of the medical expense deduction can affect anyone, of course; and as you pointed out it will cause the most harm to those who can afford it least.

But this dumpster fire of a bill is not likely to make it through the senate.

[Fresh_Start]

2. jumbo loans are common in urban liberal areas

NY, MA, NJ, CA, WA......

[MineralMan]

3. Yes, I realize that. They're not uncommon in MN, my own state.

However, if you qualify for a Jumbo, your income is likely to be on the borderline of what is considered middle class. This will affect the home construction industry more than the average taxpayer, frankly.

The medical expense deduction and student loan interest deduction, on the other hand, primarily affect people with much lower income and will cost many of them money in additional taxes.

In my own situation, I've taken the standard deduction every year since I started paying taxes, except for one. That year, I had $20k in medical expenses that weren't covered by my health insurance. I paid off that amount that year, but wouldn't have been able to pay the IRS, had I not had that deduction.

[Hoyt]

4. I agree on the Mortgage interest. The medical expense is most disgusting.

The student loan interest deduction is already limited to $2,500, so the actual tax savings potentially lost is $500 - $750. That hurts, but is not devastating in most cases.



As to medical deductions, I think Trump should support the repeal of the deduction only as long a single-payer or something comparable is enacted.

[MineralMan]

6. Yes. That medical expense deduction has saved many people's asses

in a year where they had high medical expenses. Now, it won't. That sucks!

[MaryMagdaline]

8. Paycheck

$500.00 yo $750.00 is a paycheck. It hurts

[Hoyt]

11. Not as much as medical expense deduction. But I get it, used to have student loans

myself.

[MaryMagdaline]

12. Yes

Loss of medical deduction is cruel. Did not mean to minimize. I agree with WinkyDink. This is an assault on elderly and sick.

[Lunabell]

5. I have huge student loans.

It makes a huge difference!

[Yo_Mama_Been_Loggin]

7. A $500,000 mortgage is fairly common in the Puget Sound region

When the area you live in is surrounded by mountains and water places to build are pretty limited.

That said I don't like the loss of student loan and medical expense deductions either.

[Justice]

10. Its the sudden loss of a deduction you based decisions on - buying the house, borrowing to

go to school, getting health treatments.

A mortgage over $500k in certain parts of the country is not that significant - you make more in salary but pay more in mortgage payments. Sounds grand, but at the of the day, just have a pretty regular house and a job.

[Hoyt]

14. I think it is written as "new" purchases.

[MaryMagdaline]

13. Interest deduction

On mortgages will hurt a lot of people who live in very Republican districts. Contractors and real estate people as well, who mostly vote republican. I have been a little smirky quiet around these people since this came out yesterday.