This could happen to taxpayers who choose to take the standard deduction
rather than itemizing.
(2) The former is a taxpayer's gross income after "above-the-line" adjustments such as deductions for individual retirement account (IRA) contributions and student loan interest, and the latter, prior to TCJA, was calculated as AGl minus personal exemptions and either the federal standard deduction
or itemized deductions.
* The taxpayers were unmarried individuals whose filing status was "single" and who itemized deductions on their federal income tax returns in lieu of using their 812,000 standard deduction
Should the taxpayer decide to use the graduated rates, they still have to choose their mode of deduction, either itemized deductions or the optional standard deduction
A new poll -- released by Gallup just before the April 15 tax deadline -- shows that more people disapprove than approve of the GOP-backed bill, which ushered in such major changes to the tax code as a doubling of the standard deduction
. It also took away a lot of fan-favorite deductions, such as personal exemptions.
For each example expressed below, the taxpayer is an unmarried individual filing as "single" whose standard deduction
would be $12,000 and is not subject to alternative minimum tax.
One key trend is that more people are taking the standard deduction
, which has increased significantly, and fewer people are claiming itemized deductions, which have been restricted.
Some will take the standard deduction
this year as opposed to itemizing their deductions, because the new law nearly doubles it to $12,000 for single payers and to $24,000 for married couples filing jointly.
The vast majority of Americans will take advantage of the (https://www.fool.com/taxes/2018/11/18/its-official-the-2019-standard-deduction-is-gettin.aspx) standard deduction
in 2019, but this has become a far larger deduction than it used to be, so it's worth mentioning.
Around this time of year, many taxpayers begin the annual ritual of pondering The Big Question: Do I take the standard deduction
or spend time hunting for receipts and filling out extra forms to itemize?
A hallmark of TCJA is a near doubling of the standard deduction
$12,000 for individuals and $24,000 for joint filers taxpayers may take on their returns if they can't reach a larger number via itemizing.