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by bb611 1857 days ago
90% of US taxpayers used the standard deduction in 2018, up from 70% in previous years.

This has been a major topic of discussion in tax circles for decades, the vast majority of Americans do not benefit from deductions and the federal government's direct knowledge of your income is essentially identical to your own (because of mandatory reporting from employers, banks & other financial service entities).

Specific deductions are written by and for high income individuals, and supported by lobbying from the tax industry which wouldn't exist without them, but they're not used by the vast majority of Americans, especially with raised SALT limits and doubled standard deduction.

1 comments

Refer to my response to another comment below; it is absolutely wrong to assume "this person takes a standard deduction so they haven't any tax forms to fill".

And this is not just limited to the Earned Income Tax Credit.

There are also Child Credits, Child and Dependent Care Credits, Adoption Credits, Residential Energy Credits (for those who got solar), Low-Income Housing Credits (for low-income home owners), American Opportunity Tax Credits (for those with low/middle incomes paying college expenses) ... and all of these are relevant to non-itemizers.

P.S. there are also above-the-line deductions available which reduce your AGI even if you take the standard deduction - an important one being the one for Student Loan Interest.