Summarize The Tax Cuts and Jobs Act (TCJA) significantly increased the standard deduction for all taxpayers. Single filers increased from $6,350 to $12,000, heads of households filed from $9,350 to $18,000, and married couples filed from $12,700 to $24,000. The law also eliminates the personal and dependent exemption, which allows taxpayers to deduct $4,050 for each taxpayer, spouse, and dependent. The increased standard deduction will reduce the amount of tax owed. For example, a filer with a taxable income of $40,000 must now pay $4,369 in taxes instead of $5,369, saving $1,000. These changes are expected to simplify tax preparation and lead to more people taking the standard deduction instead of itemizing deductions. Increased standard deductions can have a positive effect on the economy. The extra money saved by taxpayers can boost consumer spending, benefit businesses, and create jobs.