Standard Deductions

What Changed

Personal Exemptions

For 2018 through 2025, personal exemptions are suspended, but the standard deduction amounts are roughly doubled.

Standard deductions for 2018–2025:

  • $12,000 for singles and separate filers
  • $18,000 for heads of households
  • $24,000 for married couples filing jointly

The standard deduction amounts will be adjusted for inflation beginning in 2019.

Planning Opportunities

When the standard deduction amounts doubled, this could result in far fewer taxpayers choosing to itemize deductions most years and may encourage taxpayers to use a so-called bunching strategy. With this approach, deductions that are still permitted, such as charitable donations, are saved up and paid in larger amounts in a single year to reach a total that exceeds the larger standard deduction.

More Resources

Tax reform will have a varying impact on the deductibility of charitable giving in 2018 and beyond.