Countdown to Tax Day #4: A Simple, Super-sized Standard Deduction
Editor's Note: The Joint Economic Committee is counting down the days until Tax Day (April 17th) by showing how the Tax Cuts and Jobs Act will make life easier next year.
April 11, 2018
Countdown to Tax Day
Five Ways the TAX CUTS AND JOBS ACT (TCJA) Will Make Tax Day Less Taxing Next Year
#4: A Simple, Super-sized Standard Deduction
Taxpayers have the option of taking a simple standard deduction or itemizing a series of more complex deductions. By nearly doubling the standard deduction, TCJA effectively offers taxpayers a zero tax rate on more of their income. As a result, more than nine out of 10 tax filers will choose this simpler option when they file taxes next year.
Even those who itemize deductions will see a more streamlined form that won’t require them to track as many expenses and receipts. Itemizers will still be able to deduct interest on mortgages of up to $750,000, up to $10,000 in state and local taxes, and even more of their charitable donations. Additionally, for 2017 and 2018, itemizers with catastrophic health care costs will have relief from an Obamacare tax hike affecting the medical expense deduction.