The Tax Cuts and Jobs Act have changed lots of things in the American tax code. Obviously, the most notable changes were the elimination of personal exemptions and nearly doubled standard deduction.
These changes are aimed to simplify the tax system the U.S. uses. Instead of taking an average amount of standard deduction and taking a bunch of deductions along with it that appeal to everyone, all of it were combined under the standard deduction.
Before these changes, about 60% of Americans were taking the standard deduction as the main way to reduce their taxable income and this number skyrocketed to above 90% in 2019. This obviously lowered the number of people who itemize. Considering the fact that an increase from $6,350 to $12,000 is more than one-third of $31,800 which is nominal median income per capita.
The increase is something that cannot be missed for any middle-class citizens. It’s effortless, quick, and easy. Even if your itemizable deductions come closer to the standard deduction amount or exceed it a little bit, we still recommend you taking the standard deduction since you wouldn’t have to deal with all the paperwork, etc.