Free 2018 Tax Planning2019-01-05T15:05:52+00:00

Free 2018 Tax Planning

Personal Standard Deduction

Taxpayers who are married and filing returns jointly, will have a higher standard deduction of $24,000 as compared to the $13,000 in the previous law. Taxpayers who are single and those married but file separately now have a $12,000 standard deduction as compared to the $6,500 they would have owed before the reform was signed into law. For head of households, their deductions will be $18,000 from the previous $9,550.
Filing status Single Married filing jointly Married Filing Separately Head of Household
Standard deduction (old)  $     6,500.00  $ 13,000.00  $   6,500.00  $   9,550.00
Standard deduction (new)  $   12,000.00  $ 24,000.00  $ 12,000.00  $ 18,000.00
Increase  $     5,500.00  $ 11,000.00  $   5,500.00  $   8,450.00