11 Forgotten Tax Deductions That Used to Save Families Big
Explore these once-popular tax deductions that used to lower family tax bills significantly but have since vanished from the scene.
- Chris Graciano
- 3 min read
Tax codes have changed over the years. They have shifted to phasing out several deductions that once brought financial relief to millions of American households. These changes often go unnoticed until tax season rolls around, leaving families wondering why their returns feel lighter. Here’s a nostalgic look at 11 tax breaks that once saved big bucks—but are now off the table.
1. Personal Exemptions
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Once a staple of every tax return, personal exemptions allowed filers to deduct a set amount for themselves and each dependent. This significantly reduced taxable income for families with kids. Unfortunately, the 2017 Tax Cuts and Jobs Act (TCJA) suspended this deduction through 2025.
2. Moving Expenses for Job Relocation
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Previously, relocating for work meant you could deduct moving costs—gas, storage, even hotel stays. It made job transitions less financially painful. Now, this deduction has been scrapped unless you’re on active duty military moving due to orders.
3. Unreimbursed Employee Expenses
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Teachers, salespeople, and other employees once deducted out-of-pocket job expenses. Uniforms, travel, even tools were fair game. This deduction vanished under the TCJA, leaving many to eat costs that once qualified for relief.
4. Home Equity Loan Interest
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Interest on home equity loans was once fully deductible, making renovations and large expenses easier to justify. The rules now limit this to loans used specifically for home improvement. Borrowers who used funds for other purposes—like college tuition or medical bills—lost this tax break.
5. Tax Preparation Fees
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Yes, you used to get a break for paying someone to do your taxes or even for buying tax software. However, the TCJA quietly shelved this miscellaneous deduction.
6. Casualty and Theft Losses
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Before 2018, if your property was damaged or stolen, you could often deduct the loss not covered by insurance. Fires, floods, and even burglaries were once tax-deductible tragedies. Now, this deduction only applies to federally declared disaster zones.
7. Investment Fees and Expenses
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Advisory fees, custodial costs, and even travel to meet your financial advisor were once deductible. These were ideal for those actively managing retirement or taxable investments. Sadly, this category was axed under the TCJA.
8. Commuting Costs for Work
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While not widely known, certain work-related transportation costs were once partially deductible. This helped freelancers and remote workers who weren’t reimbursed by employers. The write-off vanished, along with relief for long-distance commuters.
9. Alimony Payments (Pre-2019 Agreements)
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Alimony payments used to be deductible for the payer and taxable for the recipient, creating a balance. However, for divorces finalized after 2018, that setup is gone. Now, payers get no deduction, while recipients don’t claim it as income.
10. Tuition and Fees Deduction
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Until 2020, taxpayers could deduct up to $4,000 in tuition and required education expenses—even without itemizing. This was a solid break for middle-class families with college students. Congress let it expire in 2020, replacing it with an adjusted lifetime learning credit.
11. Job Search Expenses
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Hunting for work used to have a silver lining—many job search costs were tax-deductible. Think résumé prep, travel for interviews, and even career coaching. However, this deduction was axed under the TCJA regardless of whether you found a job or not.