topic I was just informed that the $10,000 deduction limit was changed to $12,000. What is the situation? in Retirement tax questions

I was just informed that the $10,000 deduction limit was changed to $12,000. What is the situation?

The-Johnsons — Tue, 04 Jun 2019 20:39:54 GMT

What? What deduction are you referring to?

xmasbaby0 — Tue, 04 Jun 2019 20:39:55 GMT

What? What deduction are you referring to?

You're confusing 2 different things. Standard deduction...

Lisa995 — Tue, 04 Jun 2019 20:39:55 GMT

You're confusing 2 different things.
Standard deduction for Single is 12k
If you itemize, then the limit of deductible state and local taxes is 10K.

Are you confusing the $10,000 limit for state and local t...

xmasbaby0 — Tue, 04 Jun 2019 20:39:57 GMT

Are you confusing the $10,000 limit for state and local taxes with the new standard deduction of $12,000 for a single filer?

In past years, every taxpayer got a standard deduction of...

Hal_Al — Tue, 04 Jun 2019 20:39:58 GMT

In past years, every taxpayer got a standard deduction of about $6000 plus a personal exemption of about $4000, for a $10,000 total "deduction".

For 2018, the personal exemption has been eliminated and the standard deduction has been increased to $12,000.

Some people come out better, with this new arrangement, some don't.

We are filing Married filing jointly and the cap is 10K....

The-Johnsons — Tue, 04 Jun 2019 20:40:03 GMT

We are filing Married filing jointly and the cap is 10K. If I file as married filing separately, would that increase to 12K? If the standard deduction is 12K why am I getting a 10K message. Thank you.

Two different things. The $10,000 cap refers to the itemi...

Hal_Al — Tue, 04 Jun 2019 20:40:04 GMT

Two different things. The $10,000 cap refers to the itemized deduction for state and local taxes (income, property and sales taxes), known as SALT.
The standard deduction for Married Filing Separately (MFS) is $12,000 each (half of the $24,000 for married filing jointly-MFJ).
The $10K SALT deduction is just one piece of total itemized deductions (you can add charity and medical to that).

But here's the kicker: if you file MFS and one of you itemizes deductions, the other must also itemize. She cannot use the $12K standard deduction, if you itemize. So, if you're trying to beat the system by filing separately, it won't work.