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Nearly doubling the standard deduction Those figures nearly doubled for 2018 returns: $12,000 for single filers and married filing separately, $18,000 for heads of household, and $24,000 for married couples filing jointly and qualified widow(er)s.
For single filers, the deduction for the 2018 tax year is $12,000. That's nearly double the 2017 value of $6,350. For married taxpayers filing jointly, the standard deduction for the 2018 tax year is $24,000, up from $12,700. Because of the higher standard deduction, fewer people will benefit from itemizing.
The standard deduction amounts will increase to $12,200 for individuals, $18,350 for heads of household, and $24,400 for married couples filing jointly and surviving spouses. For 2019, the additional standard deduction amount for the aged or the blind is $1,300.
Your expenses are $1,250 above the threshold, so that's the amount you can deduct from your taxable income. However, the medical deduction threshold is set to return to 10% of AGI starting with the 2019 tax year.
Beginning Jan. 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year that exceeds 10% of their adjusted gross income.
Starting in 2018, this limit has been eliminated. Here's how the TCJA changes to itemized deductions have altered the tax landscape. Your doctor may have recommended a restricted salt diet, and so has Congress: Under the TCJA, the deduction for all state and local taxes combined cannot exceed $10,000.
If you are a single tax payer and your deductions exceed $12,000 you will itemize in 2018, and likewise, if you are married filing joint and your deductions exceed $24,000. If not, you will be taking the standard deduction in 2018.
For 2019, you can deduct medical expenses to the extent they exceed 10% of your adjusted gross income (AGI), assuming you itemize.
Summary of 2019 Tax Law Changes If you're filing as a single taxpayer in 2019or you're married and filing separatelyyou will likely be better off taking the standard deduction of $12,000 if your itemized deductions total less than that amount.
The standard deduction, which is the itemized deduction's counterpart, is basically a flat-dollar, no-questions-asked reduction in your adjusted gross income. You can take either the standard deduction or itemized deductions on your tax return. You can't do both. The question is which method saves you more money.
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