Tax Cuts and Jobs Act, also known as TCJA, has made several changes to the existing tax code. The standard deduction has nearly doubled resulting a large reduction to those who itemize their deductions. Therefore, taxpayers can either claim itemized deduction or take the standard deduction. If one was limited in the past due to the income level, they may be able to deduct more of their total itemized deduction. Under the terms of the TCJA, Taxpayers have limitation to how much you can deduct for state and local income, sales and property taxes.

Interest on home equity has been modified to zero deductible unless the interest paid on loan was used to buy, build or substantially improve a main home or second home. Charitable contributions have increased from a taxpayer's adjusted gross income; thus, donating large amount of money to charity may lead to more deductible. Although the miscellaneous deductions were suspended with the new tax law changes, there may be an opportunity to look at other itemized deductions. Keep in mind that tracking your spending is just one piece of the puzzle; tax preparer can help you come up with a plan to make sure you spend less money than you earn.