My question about the doubling of the “standard deduction of $12,000” is: Does this mean that each person claimed as a dependent is now worth $24,000 in being deducted from gross income when itemizing, or that it is only for those who do not itemize? Or is the $24,000 for two people instead of $12,000 whether or not one is itemizing?
“Or is the $24,000 for two people instead of $12,000 whether or not one is itemizing?”
It’s that one above.
However, the individual exemptions will be eliminated. If you have a couple of kids you’re already in the hole. And will be paying more unless the somehow place you in a lower bracket.
No. They eliminated the personal and dependent exemptions.
For example - we have 7 family members.
Eliminating the exemption adds to our taxable income by $28560.
The new standard deduction is approx $10k more than what we normally claim by itemizing.
So that leaves us with an additional $18560 in taxable income.
Depending on the brackets and details of child tax credit - we will pay about the same or pay an additional $2500.