Legislation introduced in U.S. House of Representatives would make permanent the increased standard tax deduction amounts enacted in 2017 as part of the Tax Cuts and Jobs Act.
The Permanent Tax Cuts for American Families Act would make permanent an enhanced deduction set to expire at the end of the year. It also would increase the standard tax deduction for tax years 2018-2025 from $6,500 to $12,000 for individual filers, from $4,400 to $18,000 for head-of-household filers, and from $13,000 to $24,000 for joint filers. For tax year 2024, the standard deduction would increase to $14,600 for individual filers and $29,200 for joint filers.
In addition, the bill makes permanent the annual adjustments for inflation.
U.S. Reps. U.S. Rep. Randy Feenstra (R-IA) and Max Miller (R-OH) introduced the bill.
“In 2017, the Tax Cuts and Jobs Act nearly doubled the standard deduction that American families, farmers, and workers could claim on their federal taxes,” Feenstra said. “This enhanced standard deduction increased Iowans’ non-taxable income and has let taxpayers keep more of their hard-earned money. However, if Congress fails to act before the end of this year, the standard deduction would be almost slashed in half and lead to massive tax hikes on Americans.”