div > div.group > p:first-child"> The 2018 tax year is the first time taxpayers will file returns under the Tax Cuts and Jobs Act. This overhaul of the tax code doubled the standard deduction, eliminated personal exemptions and curbed itemized deductions.
Before the new law, you were allowed to take this and other miscellaneous itemized deductions to the extent they exceeded 2 percent of your adjusted gross income.4 things you might not know about the new tax lawIn 2016, about 13 million returns claimed these deductions, according to data from the IRS.For instance, the average expense ratio of an actively managed equity mutual fund was 0.76 percent in 2018, according to the Investment Company Institute.
While taxpayers couldn't take a break for fees paid directly from an IRA, they could use other funds to cover the expense and then take the deduction. "The greater the growth in the IRA and the longer the time horizon, the more it would skew you toward taking money from an outside account," said Levine.