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About 30 Million People List These Tax Breaks When They Filed Last Year

Millions of taxpayers missed out on a pile of tax write-offs when they filed their returns last year. In all, 16.7 million households claimed itemized deductions on their 2018 income tax returns, according to data from the IRS. That’s down from 46.2 million taxpayers during the 2017 tax year. The decline is the result of the Tax Cuts and Jobs Act, the overhaul of the tax code that went into effect in 2018. The change to the tax law roughly doubled the standard deduction that year to $12,000 for singles ($24,000 for married filing jointly), eliminated personal exemptions and curbed several itemized deductions.

While standard deductions reduce filers’ taxable income by a flat amount, itemized deductions allow you to lower taxable income based on the sum of different expenses you incurred – including charitable giving, state and local taxes, and casualty losses. When you file, you select whichever method reduces your taxable income the most. However, with the standard deduction so high in 2018, fewer people chose to itemize

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About 30 Million People List These Tax Breaks When They Filed Last Year