After analyzing the itemize deductions, it appears that many taxpayers will be using the standard deduction of $24,000, even those who have been itemizing them for years. Some major deductions are being kept in place, however, the higher standard deductions will make itemizing not worthwhile for millions of taxpayers.
For example, a married couple pays $12,000 in mortgage interest, makes $4,000 in charitable contributions, and pays $4,000 in state and local taxes. This adds up to $20,000 in deductions, which when compared with the previous year of $13,000 standard deduction makes itemizing worthwhile. However, with the new $24,000 standard deduction for married couples, it would no longer be appealing. In fact, the Joint Committee on Taxation estimates that 94% of households will claim the standard deduction in 2018, up from about 70% from the past year.
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