This deduction is repealed under the new law, unless covered by specific federal disaster declarations, which will be explained in a later section, “Disaster Relief Provisions”.
According to prior law, a taxpayer is allowed to deduct gambling losses to the extent of gambling wins. The new law modifies the definition of gambling loss to include other expenses incurred in connection to the gambling activity, such as traveling expenses, which must be added to their total loss in calculating the allowable deduction.
Miscellaneous Itemized Deductions
The new law disallows all miscellaneous deductions (i.e. tax preparation fees, unreimbursed job expenses, etc.) previously subject to the 2% adjusted gross income floor through the end of 2025.
The Act reduces the adjusted gross income threshold from 10% to 7.5%. This change is more temporary than others, however, and will only be effective for tax years 2017 and 2018. Beginning in 2019, the threshold will revert back to 10%.
Moving Expense Reimbursement
The new law requires qualified moving expense reimbursements to be included in taxable gross income, except in the case of active duty members of the Armed Forces of the United States who move because of a military order.
*Note: The phase-out or overall limitation on itemized deductions for higher-income individuals is repealed with The Act, for the tax years 2018 through 2025.