Sentences with phrase «higher standard deduction»

Some would just take the new, higher standard deduction of $ 24,000 and not itemize every single deduction.

Apartment owners say they also could benefit from a tax code that no longer favors owners over renters now that the deduction for mortgage interest is blunted by a higher standard deduction.

The higher standard deduction will mean that fewer individuals will itemize deductions.

Moreover, a higher standard deduction may lessen the incentive to purchase a home, as fewer consumers will utilize mortgage interest and property tax deductions.

The higher standard deduction might result in taxpayers «with a little more cash to use, and we might actually see more of the low - to mid-priced range properties sell because of that.»

NAR's concern is that a higher standard deduction, even if nearly doubled, would sap the incentive effect of the current tax benefits of homeownership.

Moreover, because the plan is also expected to repeal personal and dependency exemptions, the higher standard deduction would leave homeowners owing more tax than under the current law.

At press time for the initial announcement from the White House, the NAHB released a statement on the possible repercussions of a higher standard deduction.

For renters, who don't take the mortgage deduction, the higher standard deduction will likely make most of them better off.

Even though Barbara would not get the benefit of the personal exemption under the new law, her higher standard deduction would more than make up for the loss.

On paper, the key promise of a higher standard deduction looks simple: tax savings for middle - class families.

«Although the mortgage interest deduction remains untouched, its effectiveness could be diminished as more families elect to take a higher standard deduction.

Therefore, if a spouse meets all of the qualifications, he or she can file as head of household, avoid the much less favorable filing status of married filing separately, and enjoy a higher standard deduction and lower tax rates.

If you qualify as Head of Household, you will have a lower tax rate and a higher standard deduction than a Single filer.

For many families, this should be balanced by the higher standard deduction and / or increased child tax credit (see below), but families with three or more dependents ages 17 or older may see a negative impact.2

Head of Household often allows a higher standard deduction than filing single, along with federal and state credits that may help lower taxes if you meet head of household requirements.

If you usually take the standard deduction — which will become more common, thanks to the higher standard deduction introduced by 2017's tax law — you might bunch two or three years of charitable contributions into one tax year and see if that allows you to itemize.

Take this quick quiz to determine if you qualify for a higher standard deduction.

The slightly higher standard deduction for the elderly and blind remains.

Joe, another one is higher standard deduction, but no more personal dependent exemption.

Many taxpayers will find that, while they gained from the new law's higher standard deduction, they lost a comparable sum from the elimination of personal exemptions.

Many retirees will find themselves in this tax situation in 2018 and subsequent years, thanks to the higher standard deduction introduced by 2017's tax law.

Head of household is a great option if you're a single parent — it has a lower tax rate and a higher standard deduction!

You'll note, there's no mention of personal exemptions, the $ 4,050 per person, including dependents in your household, that's gone, in favor of this higher standard deduction.

While most taxpayers will benefit from reduced tax rates and expanded tax brackets, changes in the law also mean it's less likely that you will itemize your deductions, instead opting to claim the higher standard deduction.

Because the TCJA has changed many tax provisions, taxpayers may or may not benefit from the higher standard deduction.

In fact, once you turn 65, you're eligible for an even higher standard deduction.

And as with interest that you pay over the course of the loan, the amount you pay in points is generally tax - deductible (this assumes that it still makes financial sense for you to itemize your deductions rather than take the new higher standard deduction).

The new higher standard deduction means that many taxpayers who previously itemized will now choose the standard deduction.

Head of household comes with a higher standard deduction.

While the new higher standard deduction and removal of exemptions are two major changes in the TCJA, these alone won't necessarily determine whether you'll pay more or less.

Compared to the Single filing status, Heads of Household get lower tax rates, a higher standard deduction, and qualify more easily for some tax credits.

The higher standard deduction is designed to offset the loss of the personal exemption.

With a higher standard deduction, fewer people will itemize, and that could result in fewer people itemizing on their state returns, as well — with corresponding upward impacts on state taxes.

With a new, higher standard deduction of $ 12,000, the taxpayer can deduct $ 2,800 more using the standard deduction than by itemizing.

For taxpayers who used to itemize, it may no longer make sense if the new higher standard deduction exceeds what their itemized deductions would have been.

The law also slightly increases the higher standard deduction for the elderly, the blind, and persons with a disability.

Higher standard deduction Let's take a hypothetical couple over age 65 that has already been claiming the standard deduction.

But for most taxpayers, the biggest changes have to do with the new income tax rates, a higher standard deduction, and new limits on many popular deductions.

Because the higher standard deduction will exceed the value of itemized deductions for many taxpayers, the Tax Policy Center estimates that more than 25 million families will stop itemizing in 2018 — that's more than half the number of people who have itemized in recent years.

Some rule changes will be particularly important for retirees, including income tax brackets and rates, a higher standard deduction, and more generous health care tax breaks.

For example, to claim the higher standard deduction on your 2017 income tax return, you must be born before January 2, 1953.

That means that even with the higher standard deduction, you may still qualify to take this deduction in 2018.

«For a high - tax state like New York, state and local tax deductibility has been a very important component of the federal tax code,» said DiNapoli, who added that even with a proposed higher standard deduction, it's still not a «win» for New York taxpayers.

The new federal tax law negatively affects wealthy New Yorkers because they tend to itemize their deductions and the new higher standard deduction is not enough to cover what they pay in state and local taxes.

That's when other provisions begin, like a higher standard deduction for filers.

Those deductions and countless others could be eliminated under a tax reform plan that includes a vastly higher standard deduction, which would be aimed at making it easier for people to file their taxes without itemizing.

«For a high tax state like New York, state and local tax deductibility has been a very important component of the federal tax code,» said DiNapoli who said even with a proposed higher standard deduction it's still not a «win» for New York taxpayers.

If you are legally blind, you are entitled to claim a higher standard deduction on your tax return.

The Tax Cuts and Jobs Act's higher standard deduction was sold to the American public as a «doubling» of the deduction amount.