Wednesday, November 14, 2018
Getting ready for 2018 taxes: how much difference does the standard deviation change mean for retirees?
Laura Saunders has a booklet in the Wall Street Journal, “Everything You Need to Know About the New Tax Law, Before the End of the Year”, link.
For single retirees, the have a larger standard deduction (12000) but no personal exemption; so the total is slightly more than in 2017, and slightly lower marginal tax rates.
The WSJ recommends wealthy retirees aggregate big donations into fewer years.
It may be harder to justify itemizing to go over the standard deduction. But state and local taxes still count, it looks like.
In my case, because I sold the house for a cheaper condo, the real estate taxes are much less.
Fidelity has a similar paper here.
The new law is somewhat better for some families with children.