More Taxpayers Claim Standard Deduction
The chart below from the IRS shows more taxpayers claimed the standard deduction this year versus the prior year, from all income levels. The Tax Cut and Jobs Act (TCJA) changed the law to limit certain itemized deductions and increase the standard deduction, making it more attractive for many taxpayers to claim the standard deduction over itemizing deductions.
Moving away from itemizing on your tax return can impact the tax benefits of home ownership, charitable giving, and other aspects of a household’s financial plan. If you would like to learn more about how taxes fit into your financial plan contact our office today.