Higher Estate Tax Exemption

Filing annual income tax returns isn’t the full extent of the federal taxing arm; there are also

estate

and

gift taxes

. While the federal estate tax continues to apply, a giant exemption amount means that only very wealthy individuals need to be concerned with tax planning for their heirs. For those dying in 2018, the exemption is $11.18 million. (The same exemption amount can be used to gift property during your lifetime.) And for married couples, any unused amount can be applied toward the surviving spouse’s estate in the future. But

don’t ignore lower exemptions that apply in some states

.

Higher Standard Deduction Amount

When you file your return, you still have a choice between taking the

standard deduction

or

itemizing your personal deductions

. The standard deduction amounts for 2018 are nearly double what they were in 2017: $24,000 for joint filers and surviving spouses, $18,000 for heads of households, and $12,000 for singles and married persons filing separately.

This higher standard deduction amount means you’re more likely not to itemize (it is estimated that just 10% of filers will itemize under the new tax law down from 30% previously). This simplifies your recordkeeping.

And the increased standard deduction amounts also affect whether you’re required to file any tax return because there are now higher filing thresholds reflecting these higher standard deduction amounts.

Personal Casualty or Theft

The new tax bill only allows taxpayers to claim the deduction if the loss occurred during a federally declared disaster, through 2025.