Chapter 6: Standard Deduction Versus Itemized Deductions
Chapter 6 of the Free Tax Course is all about IRS' standard deduction versus itemized
deductions. Choosing standard deduction or itemized deductions and how to claim them right are one of the
most important parts of preparing your tax return. While most people just take standard deductions, itemized
deductions may result in larger tax refunds from the IRS for some taxpayers. In this chapter, you will learn about
differences between standard deduction and itemized deductions, compare them, learn about taxes paid which are
deductible, determine which interest paid is deductible as well as many other items you can potentially itemize to
claim larger refunds from the IRS.
Where to claim standard deduction or itemized deductions?
You have determined your total income and then subtracted out any adjustments to arrive at your
adjusted gross income or AGI. If you have no adjustments, your AGI is the same amount as your total income on line
22 of the tax form 1040. You are now ready to subtract the deduction amount used from your adjusted gross income to
figure out the taxable income. You can either subtract the:
standard deduction or
If you have the choice, you should choose the method that gives you larger tax deductions,
lowering your taxable income the most so you will owe the IRS the least amount of money.