Getty Images
Taxpayers have a choice between taking the standard deduction or claiming itemized deductions when filling out their federal income tax return. And, of course, you ll always want to pick whichever one is higher. As predicted, the number of American taxpayers claiming the standard deduction on their tax return shot up significantly after the 2017 tax reform law. Why? Because that law nearly doubled the standard deduction amount.
Before the tax reform law, about two-thirds of all taxpayers claimed the standard deduction. That jumped to almost 90% for the 2018 tax year, which was the first year for the enhanced standard deduction. Since then, the vast majority of American taxpayers have continued to claim the standard deduction on their tax return.