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Tax Reform: Standard vs. Itemized Deductions (2018)
When it comes to tax deductions, the new tax law not only raises the standard deductions, it also reduces or eliminates specific deductible expenses.
So can itemizing still make sense? It’s really all about the numbers.
If you choose the standard route, the deduction limits have nearly doubled. Now you are eligible for a $12,400 deduction or, if you are married filing jointly, $24,800.
If you have itemized in the past, you may find that now, the total of your itemized deductions is lower than the standard deduction limits.
Let’s look at changes the new tax law made to some of the biggest itemized deductions.