Standard Deduction Increases Under Tax Cuts and Jobs Act

Jobs Act

Written by Curt Bach

January 9, 2018

The Tax Cuts and Jobs Act has increased the standard deduction.

Current Law

Through December 31, 2017

The inflation-adjusted basic standard deduction is $12,700 for joint filers and surviving spouses; $9,350 for head of household; and $6,350 for single or married filing separately.

New Law

Effective for tax years beginning after December 31, 2017, and before January 1, 2026

The inflation-adjusted standard deduction will be $24,000 for joint filers and surviving spouses; $18,000 for head of household; and $12,000 for single and married filing separately.

Commentary

The additional standard deduction for the elderly and blind remains unchanged. The standard deduction will also be indexed for inflation annually based on the Chained Consumer Price Index for all-urban consumers (C-CPI-U).

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Curt Bach
I joined Hawkins Ash CPAs in August 2010, and am currently a manager in the firm’s Medford office. I provide a variety of tax services, including trust and estate tax preparation and planning. I have more than nine years of experience providing audit and tax services to nonprofit organizations, governmental entities and small businesses. I am a member of our firm’s tax committee and not-for-profit service group.

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