Beginning in 2018, many taxpayers who have claimed itemized deductions year after year will no longer be able to do so.
That’s because the standard deduction has been increased to $24,000 for joint filers, $12,000 for singles, $18,000 for heads of household and $12,000 for marrieds filing separately, said Gail Rosen, a certified public accountant with Wilkin & Guttenplan in Martinsville.
Many itemized deductions have been cut back or abolished so that, coupled with the new hefty standard deduction, fewer taxpayers will have enough deductions to make it worth itemizing. We’ll get into detail on those in a moment.
Because of the higher standard deduction, the number of New Jerseyans who itemize will fall by 60 percent from 1.6 million to 658,000, according to New Jersey Policy Perspective, a progressive research group.
Personal exemptions were also suspended, meaning you will no longer receive a deduction for yourself, your spouse, qualifying children who are your dependents or qualifying relatives for whom you provided over half of their support, said Gerard Papetti, a certified financial planner and certified public accountant with U.S. Financial Services in Fairfield.
“In 2017, you received a deduction of $4,050 for each exemption you were eligible to take,” he said. “The exemption amount was scheduled to increase to $4,150 in 2018.”
But no more.