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Visitor I

How to increase tax deduction

What are the best ways to decrease my tax liabilities for the 2018 tax year since the standard deduction has been raised to $12K for individuals?
1 Comment
AJ
Member III

How to increase tax deduction

The answer to this question cannot be fully provided because this is an open-ended situation that depends on the circumstances that are specific to your financial situation.  While the increase in the Standard Deduction is expected to reduce the number of tax returns using itemized deductions, you can still itemize if your deductions, such as charitable giving, are sufficiently high.  I encourage people to look at their retirement savings options and make appropriate contributions to their 401k, 403b, 457, and IRA accounts, which can reduce taxable income.  For people who are over age 70-1/2 with IRAs, I encourage them to consider charitable contributions via Qualified Charitable Distributions (QCDs) since a QCD decreases the AGI and is not taxed.