D.C. Councilmember Anita Bonds (D-at-Large) wants to raise the individual standard deduction from $4,000 to $12,000 for low-income earners, a move that would exempt working poor families from owing any D.C. income tax.
Bonds introduced a bill Dec. 4, the “Standard Deduction Amendment Act of 2013,” that would, if enacted, provide tax relief to persons earning $40,000 or less, Bonds said in a news release.
The current standard deduction in D.C. stands at $4,000 for individuals and $2,000 in the case of a married person filing separately. Currently, these deductions do not help protect low-income families, who usually end up owing about $30 in DC tax.
The “Standard Deduction Adjustment Act of 2013” seeks to adjust the standard deduction up to $12,000 for single individual filers and $6,000 for married persons filing separately, beginning in tax year 2015, for District tax payers.
This would allow low-income filers to receive a rebate. On average, the estimated rebate would be $500 per single individual filer or as much as $1,700 per household.
“The District of Columbia already benefits from a culturally and economically diverse population that makes our hometown a great place to live, work, and thrive. DC needs to provide economic relief to ensure that low-income residents are not squeezed out due to rising cost of living and property values,” Bonds said.