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 Publication 501 Dependents, Standard Deduction, and Filing Information 2018

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[Music] hi it's the tax geek again with more of your taxes oversimplified today the question is what is the standard deduction from the earliest days of the income tax system the government has always recognized that at least some of your income should not be taxed the original amount of this standard deduction was just three thousand dollars that seems small but to put it into perspective that would be over seventy one thousand dollars in today's money taxpayers have always had the choice of taking a standard deduction versus actually adding up the expenses they could deduct which most people know as itemizing we'll look at itemized deductions in other videos since the 2018 tax cuts and jobs act doubled the standard deduction and limited what could be itemized more and more taxpayers are now taking the standard deduction this has resulted in simpler returns for most taxpayers the standard deduction is set by tax law it increases every year as the cost of living increases of course the

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