The sales tax deduction gives taxpayers the opportunity to reduce their tax liability when they deduct state and local sales taxes or state and local income taxes that they paid in 2020 — but ... Keep in mind that the new tax law changed how much property taxes can be deducted. Under the new tax law, the maximum amount of state and local property, income, and sales taxes that can be deducted is $10,000. In the past, these taxes have generally been fully tax deductible. Private Mortgage Insurance Premiums
The Tax Cuts and Jobs Act did away with the personal exemption for the 2018 tax year, counting on the doubled standard deduction (see above) and an increased child tax credit to make up for the difference. Taxpayers should be aware of this change, since it might impact the math for those with older children or other dependents.