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A comment on Why the government took home prices out of its main inflation index. Parent comment

Re:Why the government took home prices out of its main infla... by niij on Friday May 27, 2022 @12:08PM (#31531229)
They're correct; at least for the short term. A quick search tells me itemized deduction returns are only ~10% of tax returns right now, down from ~26% before the TCJA. So if you're MFJ you'd need ~$25,000 of home interest and other deductions before you'd even break even itemizing. Not counting the hassle of itemizing vs just claiming the standard deduction.

But the higher standard deduction is set to expire in just 3 years (2025)[0], which will cut it in half. That may or may not get extended. So you may want to calculate if you'd be in the ~26% of filers who'd benefit from itemizing if it did expire.

[0] https://taxfoundation.org/look-ahead-expiring-tax-provisions...

[ Parent | on HN ]
Re:Why the government took home prices out of its main infla... by dont__panic on Friday May 27, 2022 @12:28PM (#31531458)
Very interesting point about that higher standard deduction expiring in 3 years, conveniently after the next election. It'll be interesting to see how that pans out on a federal level -- lowering the standard deduction is equivalent to doubling the effective tax rate for many lower-income Americans, after all.
[ Parent | on HN ]