Contribution Deductions

For the 2018 tax year the standard deduction nearly doubled. For married taxpayers filing jointly the increase was from $12,700 to $24,000. At the same time we lost the exemptions for our dependents. For 2020 income tax return the married joint standard deduction is $24,800. In a Forbes article the statement was made that more than 90 percent of taxpayers will simply take the standard deduction this year. There can still be a benefit to keeping up with medical, taxes, mortgage interest, and contributions since the standard deduction for states like Arkansas have a much lower standard deduction.

In 2020, for the first time, you may also claim up to $300 of contributions and take the standard deduction as well. The $300 above the line deduction has not been advertised very well and most taxpayers do not seem to know it is available.

 

 

 

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