The Standard Deduction is used by about 70% of US Taxpayers and is projected to be used by even more in the coming years. The Standard Deduction nearly doubled for tax year 2018, and increased again for the 2019 tax year, reference the table below to see the changes for your filing status.
|
|
2017 |
2018 |
2019 |
|
Single |
$6,300 |
$12,000 |
$12,200 |
|
Head of Household |
$9,300 |
$18,000 |
$18,350 |
|
Married Filing Joint |
$12,600 |
$24,000 |
$24,400 |
|
Married Filing Separate |
$6,300 |
$12,000 |
$12,200 |
|
Qualifying Widow |
$12,600 |
$24,000 |
$24,400 |
The changes to the standard deduction will not only affect your taxable income, they will determine if you have a filing requirement. In the past, taxpayers had a federal filing requirement if the total income earned, exceeded the standard deduction and personal exemption(s). Now, tax payers have a filing requirement if the income exceeds the new standard deduction.
As a result of numerous changes to itemized deductions, many tax payers will elect to use the standard deduction. You can read more about changes to itemized deductions here.
See how the new Standard Deduction will affect your refund with our 2019 refund calculator.