The Tax Breaks You Assume Exist — That Don’t Anymore

hamzaturkkol / Getty Images/iStockphoto

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Although the foundations of the tax code remain fairly similar from year to year, the rules are constantly evolving. Many Americans still file their taxes based on deductions and credits they remember from years ago, only to discover those tax breaks quietly expired, phased out or were sharply narrowed. For example, temporary pandemic relief programs have long since ended and several long-standing deductions have been recently changed or been eliminated. 

Here’s a look at some of the most commonly assumed tax breaks that either no longer exist or simply don’t work the way people expect any more and how those changes could impact your tax returns.

The ‘Above-the-Line’ Charitable Deduction

During the pandemic, taxpayers could deduct up to $300 ($600 for joint filers) in charitable donations even if they didn’t itemize. That temporary benefit expired after the 2021 tax year.

The IRS confirmed that charitable contributions are now deductible only if you itemize deductions, meaning taxpayers who take the standard deduction generally receive no tax benefit for small donations. 

Why it matters: If you’ve been counting on a write-off for modest donations while using the standard deduction, that benefit is gone. Bunching charitable contributions into one year to exceed the standard deduction threshold may be the only way to recapture tax value.

The Tuition and Fees Deduction

The above-the-line tuition and fees deduction allowed taxpayers to deduct up to $4,000 in qualified education expenses. It permanently expired after the 2020 tax year, per the IRS.

In its place, the Lifetime Learning Credit was expanded, but the credit phases out at higher income levels and comes with strict eligibility rules, according to the IRS.

Why it matters: Taxpayers who previously deducted tuition directly from income may now qualify for nothing, especially higher-income households that exceed the credit’s phaseout limits.

Unreimbursed Employee Business Expenses

Before 2018, employees could deduct unreimbursed job expenses, such as tools, uniforms, mileage and professional fees, as miscellaneous itemized deductions. 

That deduction was eliminated under the Tax Cuts and Jobs Act (TCJA) through at least 2025. Only certain groups, such as reservists, qualified performing artists and fee-based government officials, still qualify, per the IRS.

Why it matters: If your employer doesn’t reimburse work-related expenses, you generally can’t deduct them anymore on your federal return.

Home Office Deduction for Employees

While the home office deduction still exists, it doesn’t apply to remote employees, a common misconception. In reality, only self-employed taxpayers who meet strict exclusive-use requirements may claim the home office deduction. The intricacies of this deduction are outlined in IRS Topic No. 509. 

Why it matters: Millions of W-2 employees still assume home office expenses reduce their taxes, but that deduction has been unavailable to employees for years.

Mortgage Interest Deduction at Old Limits

Mortgage interest remains deductible for taxpayers who itemize, but the limits have been lowered. For loans originated after Dec. 15, 2017, interest is deductible only on the first $750,000 of qualified mortgage debt. However, older mortgages may retain a $1 million limit, according to the IRS. 

Why it matters: Many homeowners no longer receive a meaningful tax benefit from mortgage interest, especially if their total itemized deductions don’t exceed the standard deduction.

Full Child Tax Credit Expansion

The temporary expansion of the Child Tax Credit in 2021, part of the American Rescue Plan Act, temporarily increased the maximum credit to up to $3,600 per child under age 6 and $3,000 per child ages 6 to 17. It also made the credit fully refundable and included monthly advance payments. That expansion has expired, per the IRS and the credit has reverted to a baseline of up to $2,200 per qualifying child. Only part of the credit is potentially refundable and it comes with stricter income phase-out rules.

Why it matters: Families should not expect the unusually large refunds that occurred during the pandemic years.

Moving Expense Deduction (Most Taxpayers)

Most taxpayers can no longer deduct moving expenses unless they are active-duty military members relocating under orders. For everyone else, job-related moves, employer transfers and self-funded relocations no longer qualify for a federal tax deduction, according to the IRS.

Why it matters: Job-related moves generally offer no federal tax deduction anymore.

What This Means for Filers

Tax law changes often linger quietly for years, catching taxpayers off guard. Before filing you’ll want to do the following:

• Confirm which deductions still exist; don’t rely on outdated assumptions.
• Review whether itemizing still benefits you more than the standard deduction. 
• Monitor income phaseouts for education and family credits using tax bracket planning tools. 
• Adjust withholding or savings if expired credits reduce refunds. 

Staying current with year-to-year changes in IRS policy is the best way to file your taxes accurately and take advantage of the appropriate deductions. 

Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.

Share This Article: