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New Member
posted Jun 1, 2019 10:27:42 AM

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.

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Level 9
Jun 1, 2019 10:27:44 AM

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.