Under the bill, the standard deduction could nearly double for all taxpayers before returning to current law in 2026. in which means starting next year, an individual could need their total deductions to exceed $12,000, the tax bill’s brand-new standard deduction for individual taxpayers, up by the current $6,350.
Married couples filing jointly could need deductions worth more than their brand-new standard deduction of $24,000 under the bill, which will be up by $12,700 for 2017; for heads of households This particular’s $18,000, up by $9,350 This particular year.
About 49 million taxpayers, or 28 percent, currently itemize, according to the Urban-Brookings Tax Policy Center. If the bill will be approved, This particular’s likely even fewer taxpayers could do so.
About 8.8 million Americans used the medical expense deduction in 2015, saving themselves an aggregate $86.9 billion. Nearly half of them (49 percent) had annual income below $50,000 as well as also 69 percent had income under $75,000, according to the AARP’s Public Policy Institute.
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