There are a few reasons that the Standard Deduction may be higher than your Itemized Deductions this year.
Due to the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017, beginning on your 2018 Tax Return, the Standard Deduction has been increased to the following amounts based on your filing status:
- Single/Married File Separate- $12,000
- Head of Household- $18,000
- Married Filing Joint- $24,000
Because of these increased Standard Deduction amounts, many taxpayers who are used to Itemizing their Deductions on Schedule A will no longer need to do so because the Standard Deduction is higher than their Itemized Deductions.
Secondly, there is a new limitation on the amount of taxes you can deduct on your Schedule A. Beginning in 2018, the combination of State, Local, Property, and Sales Tax (SALT) deducted on your Schedule A is limited to $10,000. It sounds like this new limitation is what impacted your Itemized Deductions this year.
Another change that may have affected your Itemized Deductions is the fact that the new tax law eliminated all "Miscellaneous Itemized Deductions" formerly allowable on your Schedule A. This includes all "unreimbursed employee expenses", Tax Prep Fees, Portfolio Advisory Fees, etc.
For more information on this new limitation as well as other changes that may have an effect on your return, check out this TurboTax FAQ: How Will New Tax Legislation Affect My 2018 Tax Return?
