The Standard Deduction is that share of income which is exempted from tax. According to the new reforms in U.S taxes, the Standard Deduction will be higher. As expected, after the higher Standard Deductions, 92% of Americans will opt for Standard Deductions in tax reforms. These deductions will bring down your sum of earnings which you have to pay before April 15 timeline.
The new limits of Standard Deduction for different tax filing status are as follows:
In accordance with the new tax reforms in the U.S., if you meet the above requirements your standard deduction will be $18,000 which has increased in comparison of 2017 being $9,350.
With a change in the U.S. tax reform, the couple will get a higher standard deduction of $24,000 in comparison to $12,700 which was in 2017.
With a change in the U.S. tax reforms, married filing separately has increased to $12,000 from $6,350 which was in the year 2017.
The qualifying widow(er) will get a standard deduction of $24,000 for the years 2018-2025 which has increased from 2017 deduction of $12,700.
You are eligible for Standard Deduction if you meet one of below criteria:
You aren’t eligible for Standard Deduction if you fall under any of these categories:
Any Estates, Partnerships, Common trust funds and trusts are also not eligible for Standard Deduction.
Standard Deduction is determined by the following:
You don’t require any documents for claiming Standard Deductions.
With the new tax reforms of US 2018-2025, the Standard deduction’s exemption has increased which is in favor of every taxpayer. This helps reduce the tax burden of an individual.
A. Yes, the individual who is U.S. citizen can avail of standard deduction benefits, irrespective of his geographical boundaries anytime during the year.
A. Yes, the students/trainees who are travelling to the U.S. on J1/F1 visas are eligible to claim the standard deduction on their returns, even though they will be filing a non – resident return in the U.S.
A. You should meet the eligibility criteria of being a resident of U.S and meet the SPT requirements in order to qualify for standard deductions. If not, you cannot get any exemptions under the standard deductions.