Beginning for the tax year ending December 31, 2018, the standard deduction is increasing to $24,000 for married individuals filing a joint return, $18,000 for head-of-household filers, and $12,000 for all other taxpayers, adjusted for inflation in the 2019-2025 tax years. Additional deductions are available for the elderly and the blind. This increase in the standard deduction will likely simplify the annual tax compliance for individual taxpayers, especially those that are not business or income-property owners.
If you have historically elected to itemize your deductions, but your total itemized deductions have typically been less than the new, higher standard deduction limits taking effect in 2018, it may not be necessary to continue to track your expenses for tax purposes going forward unless, of course, something unusual occurs during the year.
If you have questions on how this increased limit applies to you, please contact us today to schedule an appointment.