Itemize Deduction vs. the Standard Deduction

Another new tax law change:

The standard deduction for tax year 2018 almost doubled from 2017. With this increase, along with the changes to itemized deductions, the IRS predicts that more people will take the standard deduction.

On your personal tax return each year you have the choice of taking the standard deduction or itemizing your deductions. In almost all cases, you take the largest amount.

Standard deduction amounts for 2018

Single $12,000
Married Filing Jointly $24,000
Married Filing Separate $12,000
Head of Household $18,000

If you are 65 or over, blind, or disabled, you can add an additional $1,300 if married or $1,600 if unmarried.

Depending on your situation, you may save money on taxes or have a higher tax bill for 2018.

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