Which of the following deductions cannot exceed a certain AGI percentage according to the TCJA changes?

The deduction for cash contributions to public charities is limited by a certain percentage of the taxpayer's adjusted gross income (AGI) due to the changes enacted by the Tax Cuts and Jobs Act (TCJA). Specifically, under TCJA, cash contributions made to qualifying public charities can be deducted up to 60% of the taxpayer's AGI, which represents an increase from the previous 50% limit. This regulation is significant in managing how much of a taxpayer's income can be offset by charitable donations.

This framework reflects the government's encouragement of charitable giving while ensuring that such deductions remain balanced and don't disproportionately reduce taxable income. Understanding AGI limitations is crucial for tax planning and compliance, especially as it relates to maximizing potential deductions while adhering to IRS guidelines.

In contrast, other deductions mentioned do not have the same AGI percentage limitations applied in the same way. For instance, medical expenses can be deducted only to the extent they exceed a certain percentage of AGI (7.5% for most taxpayers, or 10% for some). Charitable contributions to private foundations face different rules entirely, and payments for higher education are generally handled through different credits or deductions that do not adhere to the same AGI ceiling for contributions. Therefore, recognizing the specific