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    Repeal of Senior Std Deduction

    I thought the additional std. deduction for seniors over 65 yrs old was eliminated and they would just be able to use the new standard deduction. I was reading an article that said it was not repealed. It was retained. Has anyone read it was retained?

    #2
    Additional STD

    Originally posted by ruthc View Post
    I thought the additional std. deduction for seniors over 65 yrs old was eliminated and they would just be able to use the new standard deduction. I was reading an article that said it was not repealed. It was retained. Has anyone read it was retained?
    Brief excerpt from a reliable tax newsletter:

    Standard deductions nearly double to $24,000 for couples, $12,000 for singles and $18,000 for household heads.
    Folks age 65 or up and blind people get $1,250 more per person ($1,550 if unmarried).


    FE

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      #3
      for 2018 the amounts will be...

      Originally posted by FEDUKE404 View Post
      Brief excerpt from a reliable tax newsletter:

      Standard deductions nearly double to $24,000 for couples, $12,000 for singles and $18,000 for household heads.
      Folks age 65 or up and blind people get $1,250 more per person ($1,550 if unmarried).


      FE
      ^^ those are the amounts for 2017, but in general FEDUKE404 is correct - the new tax legislation retained the add'l std deduction for elderly and blind. You won't find anything about this add'l deduction allowed in the new law because it wasn't mentioned.

      The amounts for this are ones that are indexed for inflation, and those amounts were issued by the IRS in Rev Proc 2017-58 back in November. The 2018 amount will be an add'l $1,300 for the aged or blind, and $1,600 if also unmarried and not a surviving spouse. It's on page 14 here in this link to the Rev Proc: https://www.irs.gov/pub/irs-drop/rp-17-58.pdf
      jklcpa

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        #4
        Thank you!

        Thanks for your responses. I do a lot of seniors' returns and they will be hapy to hear the deduction is still there!
        Happy New Year to all!

        Comment


          #5
          Wrong numbers

          Originally posted by JudyL View Post
          ^^ those are the amounts for 2017, but in general FEDUKE404 is correct - the new tax legislation retained the add'l std deduction for elderly and blind. You won't find anything about this add'l deduction allowed in the new law because it wasn't mentioned.

          The amounts for this are ones that are indexed for inflation, and those amounts were issued by the IRS in Rev Proc 2017-58 back in November. The 2018 amount will be an add'l $1,300 for the aged or blind, and $1,600 if also unmarried and not a surviving spouse. It's on page 14 here in this link to the Rev Proc: https://www.irs.gov/pub/irs-drop/rp-17-58.pdf
          Most interesting! Guess we will need to await a "correction" from the Kiplinger folks re information shown in their 12/29/2017 tax letter.

          Of course, the same publication cited above also states on page 16 that the "personal exemption amount" is raised to $4,150 starting in 2018. It is my (limited) understanding that, for all intents and purposes, there is no such thing as a "personal exemption" after tax year 2017.

          But for now, I need to get geared up for the rules for all those 2017 tax returns that await me. . .

          FE
          Last edited by FEDUKE404; 12-31-2017, 11:48 AM.

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            #6
            Sorry FE, I see that my post bothered you. As I said, the cite I posted was to the inflation-related increases that the IRS published back in November, and at that time neither the IRS nor anyone else knew that the tax law would pass, so it obviously includes some items that have been repealed. We have all the other inflation-related adjustments to work with also that were published by the IRS prior to the new law that will also apply going forward that weren't repealed, adjusted, or changed by the new legislation, so at this point, we have to apply what we know and have to work with and piece things together.

            I do have several excellent newsletter-style sources that people here may find useful:

            Here's 167 pages of analysis published by KPMG that simply says: "The new law retains the additional standard deduction for the elderly and the blind." https://home.kpmg.com/content/dam/kp...dec22-2017.pdf

            And this shorter summary published by CCH that is accessible to the public on their website that does mention the higher $1,300/$1,600 limit on page 2 here: https://www.cchgroup.com/media/wk/ta...ts-job-act.pdf
            jklcpa

            Comment


              #7
              Misstated numbers

              Originally posted by JudyL View Post
              Sorry FE, I see that my post bothered you. As I said, the cite I posted was to the inflation-related increases that the IRS published back in November, and at that time neither the IRS nor anyone else knew that the tax law would pass, so it obviously includes some items that have been repealed. We have all the other inflation-related adjustments to work with also that were published by the IRS prior to the new law that will also apply going forward that weren't repealed, adjusted, or changed by the new legislation, so at this point, we have to apply what we know and have to work with and piece things together.

              I do have several excellent newsletter-style sources that people here may find useful:

              Here's 167 pages of analysis published by KPMG that simply says: "The new law retains the additional standard deduction for the elderly and the blind." https://home.kpmg.com/content/dam/kp...dec22-2017.pdf

              And this shorter summary published by CCH that is accessible to the public on their website that does mention the higher $1,300/$1,600 limit on page 2 here: https://www.cchgroup.com/media/wk/ta...ts-job-act.pdf
              Good grief. . .your post didn't "bother me" but I just questioned the accuracy of the link which ALSO mentioned an erroneous/nonexistent "personal exemption amount" for 2018.

              I'm more concerned about how Kiplinger, usually quite reliable, apparently posted some incorrect numbers in their (somewhat costly) newsletter. Guess we will have to see if they issue a correction in the next issue.

              It's way too early for me to go chasing 2018 tax rabbits or even to plow through mountains of related tax publications. But thanks for your due diligence to inform us all!

              FE

              Comment


                #8
                Corrected information

                Originally posted by JudyL View Post
                ^^ those are the amounts for 2017, but in general FEDUKE404 is correct - the new tax legislation retained the add'l std deduction for elderly and blind. You won't find anything about this add'l deduction allowed in the new law because it wasn't mentioned.

                The amounts for this are ones that are indexed for inflation, and those amounts were issued by the IRS in Rev Proc 2017-58 back in November. The 2018 amount will be an add'l $1,300 for the aged or blind, and $1,600 if also unmarried and not a surviving spouse. It's on page 14 here in this link to the Rev Proc: https://www.irs.gov/pub/irs-drop/rp-17-58.pdf
                Kiplinger has now corrected with the following:

                Individuals age 65 or older and the blind continue to get an additional standard deduction under the new tax law.
                In our last Letter, we used 2017 figures instead of 2018 inflation-adjusted numbers.
                For 2018, these people will get $1,300 more per person ($1,600 if unmarried).


                Apologies for all the confusion.

                FE

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