10 States With the Largest Decreases in Itemized Tax Returns


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Editor’s Note: This story originally appeared on SmartAsset.com.

The Trump tax bill — formally known as the Tax Cuts and Jobs Act (TCJA) — nearly doubled the standard deduction while also limiting some itemized deductions.

From 2017 to 2018, the standard deduction rose from $6,350 to $12,000 for singles, from $12,700 to $24,000 for married couples filing jointly and from $9,350 to $18,000 for heads of household. Additionally, the bill capped state and local tax deductions at $10,000, lowered the mortgage interest deduction and eliminated deductions for casualty losses and miscellaneous expenses.

With the bill’s passage, researchers theorized that these changes would compel taxpayers to switch from itemizing deductions to taking the new higher standard deduction.

In this study, we used recently published IRS data to take a closer look at the extent to which Americans switched their itemization status. Specifically, we looked at how the distribution of returns claiming itemized deductions changed from 2017 and 2018 and how the share of itemizers changed in different states.

Following are the states with the largest decreases in itemized tax returns. For details on our data sources and how we put the information together to create our findings, check out the Data and Methodology section at the end.

1. Connecticut

Hartford, Connecticut
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Itemized returns in 2017: 737,660

Percentage of total returns itemized in 2017: 41.77%

Itemized returns in 2018: 267,920

Percentage of total returns itemized in 2018: 15.15%

Percent change: -26.62%

2. New Jersey

Hoboken, New Jersey
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Itemized returns in 2017: 1,874,490

Percentage of total returns itemized in 2017: 42.24%

Itemized returns in 2018: 757,410

Percentage of total returns itemized in 2018: 16.97%

Percent change: -25.27%

3. Minnesota

Rochester, Minnesota
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Itemized returns in 2017: 983,490

Percentage of total returns itemized in 2017: 35.47%

Itemized returns in 2018: 314,640

Percentage of total returns itemized in 2018: 11.25%

Percent change: -24.22%

4. Wisconsin

Madison, Wisconsin
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Itemized returns in 2017: 912,290

Percentage of total returns itemized in 2017: 31.82%

Itemized returns in 2018: 223,530

Percentage of total returns itemized in 2018: 7.77%

Percent change: -24.05%

5. Iowa

Iowa farm
By Dan Thornberg / Shutterstock.com

Itemized returns in 2017: 448,780

Percentage of total returns itemized in 2017: 30.78%

Itemized returns in 2018: 109,810

Percentage of total returns itemized in 2018: 7.53%

Percent change: -23.26%

6. Massachusetts

Springfield, Massachusetts
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Itemized returns in 2017: 1,306,310

Percentage of total returns itemized in 2017: 37.79%

Itemized returns in 2018: 513,360

Percentage of total returns itemized in 2018: 14.72%

Percent change: -23.07%

7. Oregon

Medford, Oregon
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Itemized returns in 2017: 727,520

Percentage of total returns itemized in 2017: 37.53%

Itemized returns in 2018: 286,450

Percentage of total returns itemized in 2018: 14.57%

Percent change: -22.95%

8. New York

Yonkers, New York
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Itemized returns in 2017: 3,427,800

Percentage of total returns itemized in 2017: 35.36%

Itemized returns in 2018: 1,211,470

Percentage of total returns itemized in 2018: 12.43%

Percent change: -22.92%

9. Rhode Island

Providence, Rhode Island
Sean Pavone / Shutterstock.com

Itemized returns in 2017: 178,920

Percentage of total returns itemized in 2017: 33.34%

Itemized returns in 2018: 57,380

Percentage of total returns itemized in 2018: 10.59%

Percent change: -22.75%

10. Maryland

Harpers Ferry National Historic Park
KhanIM / Shutterstock.com

Itemized returns in 2017: 1,393,890

Percentage of total returns itemized in 2017: 46.68%

Itemized returns in 2018: 722,050

Percentage of total returns itemized in 2018: 24.03%

Percent change: -22.65%

Data and Methodology

A man studies financial data at his computer
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All data for this report comes from IRS. To find the states with the largest and smallest decreases in the share of itemizers, we compared itemizers as a percentage of all taxpayers in 2017 and 2018. We then calculated the percentage point difference between those two figures.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.



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