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dframe25
New Member

Why is my federal deduction 1/2 of what it was last year with almost identical numbers?? Program appears to want me to use the standard deduction.

 
1 Reply
Zbucklyo
Level 9

Why is my federal deduction 1/2 of what it was last year with almost identical numbers?? Program appears to want me to use the standard deduction.

The federal tax laws were radically overhauled for tax year 2018.  Biggest changes for your situation are an increase in the standard deduction ($12,000 for single, $24,000 for married filing jointly if under 65), and a change in the deduction for state and local taxes (generally state income tax and property tax), which are now limited to $10,000.  Many people who used to itemize are now better off taking the standard deduction.

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