What is the IRS' Standard Tax Deduction?
The Standard Deduction is a dollar amount that reduces the amount of income on which you are
taxed by Uncle Sam. The standard deduction is a benefit that eliminates the need for many taxpayers to itemize
Should I itemize or take standard deduction?
If your itemized deductions are higher than your standard deduction, you will want to itemize
your deductions to lower your tax liability owed to the IRS. The Itemized Deduction section will explain situations
where itemizing your tax deductions may be more beneficial than just taking the standard deduction.
Where to claim standard deduction?
The amount of your standard deduction (or total itemized deduction from line 28 of Schedule A, Itemized Deductions) is entered on line 40 of the tax form 1040.
What is the standard deduction the IRS allows?
The amount of standard deduction varies from year to year but the current standard deduction
amount allowed by the IRS is shown on the current tax form 1040. For example, the
2007 standard deduction amount is:
|Single or married filing separately
|Married filing jointly or qualifying widow(er)
|Head of Household
The standard deduction is higher if you are 65 or older and/or blind.