The supposed massive raise in the standard deduction is not that massive. Though they increased the standard deduction by about $6,000 for singles and $11,000 for couples, they did away with the $4,050 exemption per person deduction. So that makes the actual increase about $2,000 for singles and $3,000 for couples.
Switching the exemption dollars to standard deduction makes it difficult to itemize medical or charitable expenses and get anything back. So, those with significant medical outlays are hurt as are charitable agencies and churches since donating to them gives no tax benefit to the average person, even the average generous person.
2017 form 1040 |
2018 form 1040 |
2 comments:
Yep, it's definitely not what it's cracked up to be, so it's great that you're pointing that out. A lot of folks are going to be sorely disappointed.
I've not bothered to install the tax software because it takes until mid-February for the feds and state to get their acts together, so there's no point.
Always glad to be on the same page with you, Max! :-)
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