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In reply to the discussion: Why Many Americans Are Shocked by Their Trump Tax Refund [View all]Honeycombe8
(37,648 posts)It also doubled the standard deduction, to $12,000. But it did away with the personal exemption. That would give a net additional deduction of about $2,000 (not $6,000, like some thought).
So those two things combined DO amount to a tax cut.
So the difference is what the employer withheld wasn't enough and/or the itemized deductions that were newly restricted made a big difference to some people.
The biggest restricted itemized deduction is the property tax, capped at $10,000. There are others, I guess, that I'm not familiar with. I THINK there was something changed about earned income tax credit or daycare or something.
I wonder if the amount withheld was artificially low, to give people the false sense that the tax cut was bigger than it was.