With Tax Time Coming Up Posted on 12/14/2018 at 18:27:03 by Bill Crawford, (14)
When going over some old FORUM posts, I just happened to come across the following post--which looks like the size of the $24,000 standard deduction will be effectively reduced by about $9,000, for a married couple filing jointly.
"...The Increase in the Standard Deduction Posted on 12/31/2017 at 14:10:14 by Bill Crawford, (14)
One of the big talking points about the New Tax Bill is the doubling of the standard deduction, from $6,000 to $12,000 for an individual, and from $12,000 to $24,000 for a married couple filing jointly.
What tends to escape notice in this claim is that the new tax bill also eliminates the personal exemption of $4,050 for each individual in the household, including parents and their children under the age of seventeen.
(For a married couple with one child under the age of seventeen, this would negate the doubling of the standard deduction. However, this tends to be offset somewhat by the doubling of the child tax credit from $1,000 to $2,000).
For a married couple with no children, this effectively means an increase in the standard deduction of $3,900 vice $12,000 ; i.e., 33% rather than 100%. (This is still nice, but not quite the same as doubling the standard deduction).
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