Ask Terry Questions IRS standard deduction for 2018 taxes

IRS standard deduction for 2018 taxes

By Terry Savage on March 29, 2018 | Taxes & Economy

Has it been passed into law that the standard deduction on the IRS form will be doubled for the 2018 tax year?

Terry Says

For 2018, the standard deduction will be $12,000 for an individual, and $24,000 on a joint return.  The idea is that should make tax time easier -- as many people won't have enough deductions to warrant itemizing.  A reminder that state and local tax deductions are limited to a combined $10,000.   Those are the deductions that used to make itemizing worthwhile for many people.  But with the new standard deduction, the most likely thing to raise you above the limits is charitable contributions, or perhaps deductible medical expenses, or even business expenses.  Then you'll have to ask whether it's worth the time, energy and cost of tax preparation to itemize.   (And yes, I am well aware that many people in high tax states are big losers as a result of that $10,000 cap -- even with the lower tax rates.)



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