Swordsmyth
11-19-2018, 03:56 PM
The standard deduction nearly doubled in 2018 as part of the Tax Cuts and Jobs Act. For example, the standard deduction for married couples filing a joint return jumped from $12,700 in 2017 to $24,000 in 2018. Although the personal exemption was eliminated, the combination of the higher standard deduction and the increased Child Tax Credit (https://www.fool.com/taxes/2018/01/09/the-2018-child-tax-credit-changes-what-you-need-to.aspx?&utm_campaign=article&utm_medium=feed&referring_guid=b96855a3-058c-442f-809b-0afca55e724d&utm_source=yahoo-host) resulted in significant tax savings for many American families.
Well, the IRS just announced its inflation-related adjustments for the 2019 tax year, and the standard deduction is going up a bit more. Here's a rundown of the new 2019 standard deduction and what it could mean for you.
The 2019 standard deductionI won't keep you in suspense. For 2019, the standard deduction is increasing as follows:
Tax Filing Status
2018 Standard Deduction
2019 Standard Deduction
Change
Married filing jointly
$24,000
$24,400
$400
Head of household
$18,000
$18,350
$350
All others
$12,000
$12,200
$200
Data Source: IRS.
To be clear, the 2019 standard deduction applies to the income you earn in 2019 and the tax return you'll file in 2020. The column with the 2018 standard deductions is what you'll use when you file your next tax return in 2019.
Will you use the standard deduction in 2019 and beyond?The short answer is "probably." Since the standard deduction that you'll use in 2019 when filing your taxes has roughly doubled, and the new increases are based on this higher amount, itemizing deductions will no longer be worthwhile for many households.
More at: https://finance.yahoo.com/news/official-2019-standard-deduction-getting-114700852.html
Well, the IRS just announced its inflation-related adjustments for the 2019 tax year, and the standard deduction is going up a bit more. Here's a rundown of the new 2019 standard deduction and what it could mean for you.
The 2019 standard deductionI won't keep you in suspense. For 2019, the standard deduction is increasing as follows:
Tax Filing Status
2018 Standard Deduction
2019 Standard Deduction
Change
Married filing jointly
$24,000
$24,400
$400
Head of household
$18,000
$18,350
$350
All others
$12,000
$12,200
$200
Data Source: IRS.
To be clear, the 2019 standard deduction applies to the income you earn in 2019 and the tax return you'll file in 2020. The column with the 2018 standard deductions is what you'll use when you file your next tax return in 2019.
Will you use the standard deduction in 2019 and beyond?The short answer is "probably." Since the standard deduction that you'll use in 2019 when filing your taxes has roughly doubled, and the new increases are based on this higher amount, itemizing deductions will no longer be worthwhile for many households.
More at: https://finance.yahoo.com/news/official-2019-standard-deduction-getting-114700852.html