In late December 2017, Congress passed a major reform of the Internal Revenue Code, known as the Tax Cuts and Jobs Act. Now it’s time to pay close attention to these changes as we gather our 2018 records and prepare federal taxes.
The biggest change that affects all taxpayers is the standard deduction amount. The new tax law almost doubles the previous standard deduction amount to $24,000 for married filing jointly, $12,000 for single filers, and $18,000 for heads of households. This increase means that while in past years you might have itemized, this year you might be better off taking the standard deduction.