This bill would keep the higher standard tax deduction in place permanently. That means many people would keep more of their income tax-free before any taxes are calculated. The higher base amounts—$24,000 for joint filers, $18,000 for heads of household, and $12,000 for single filers—would no longer expire, and they would keep rising each year with inflation.

Key points:

• Who is affected: Most taxpayers who take the standard deduction (single, married filing jointly, and head of household).
• What changes: The larger standard deduction amounts are made permanent and will continue to be adjusted each year for inflation.
• When: The changes apply to tax years starting after the law is enacted.