Does Tax Reform Impact How I Claim Standard vs. Itemized Deductions?

Tax Reform, Uncategorized

On December 22, 2017 the biggest piece of tax legislation in about three decades was passed.  One of the biggest changes to the new law nearly doubles the standard deduction and eliminates or limits a number of common itemized deductions many people took in past years. Our estimate is that nearly 90% of taxpayers will now take the higher standard deduction, up from about 70% in previous years.  You may have itemized your tax deductions in the past if you are for instance a homeowner, but now you may benefit from taking the standard deduction if the new standard deduction amount for your filing status is more than your itemized tax deductions.

This means more taxpayers can feel empowered to take charge of their finances starting with doing their own taxes with TurboTax. And if they have tax questions they can get their tax questions answered with a live CPA or Enrolled Agent, with TurboTax Live.

Check out our Standard vs Itemized Tax Deduction Interactive, that in just five quick screens helps you understand the changes in the standard deduction and itemized deductions, gives you an estimate of your deductions based on inputs, tells you if may claim standard vs itemized, and makes recommendations on some end of year tax moves you can make to increase your itemized deductions.

Comments (5) Leave your comment

  1. This link is a bit confusing as I thought it was going to allow me to begin my 2018 return when I click on Start here and I was brought into the 2017 return prep

    1. Hi Donna,
      Thank you for your comment. That’s because 2018 isn’t ready yet, but check back in and you will be able to start your 2018 taxes.
      Best,
      Lisa Greene-Lewis

  2. Your quick guide to Standard vs Itemized did not include the State Income Tax deduction. The guide says I gave $21,000 in itemized deductions so the standard would be better. But it doesn’t allow me to add the $11,000 in state income taxes. In 2017 my itemized deductions were $33,000. It looks like my tax liability will be greater because I will be stuck with the $24k standard.

    1. Hi Glenn,
      Thank you for your feedback. The state income tax deduction is included where you input property taxes, state income taxes, and sales tax which all together can only be $10,000 as a result of the new tax law. I hope this helps.
      Best,
      Lisa Greene-Lewis

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