Restructure Tax Deductions
Current Status: CompromiseAs of
"The Trump Plan will increase the standard deduction for joint filers to $30,000, from $12,600, and the standard deduction for single filers will be $15,000. The personal exemptions will be eliminated as will the head-of-household filing status.
In addition, the Trump Plan will cap itemized deductions at $200,000 for Married-Joint filers or $100,000 for Single filers."
In late April, 2017, Trump announced a draft tax plan that would increase the standard deduction in order to deter taxpayers from taking itemized deductions. The idea was carried through to the Republican tax reconciliation bill later that year, changing the standard deduction from $6500 to $12000 for single filers, and from $13000 to $24000. In addition to these being less than he initially promised, the bill also sets an expiration for the increased standard deductions and stripped all personal exemptions.
Additionally, although numerous deductions were restructured, no limit on deductions was imposed and, in fact, the existing limits on deductions based on specific AGI amounts as suspended. The bill was signed into law in December 2017.
(Sec. 11021) This section temporarily increases the standard deduction to $24,000 for married individuals filing a joint return, to $18,000 for head-of-household filers, and to $12,000 for all other taxpayers. The amount of the standard deduction is indexed for inflation after 2018 using the chained CPI.
(Sec. 11046) This section suspends the overall limitation on itemized deductions, which currently applies when AGI exceeds a specified amount.