What Is a Federal Standard Deduction?
Deductions reduce the amount of taxable income upon which a taxpayer must pay income tax. The Internal Revenue Service (IRS) allows tax filers to either itemize (list) their expenses or to take a standard deduction. A federal standard deduction allows a taxpayer to deduct a set amount on his taxes without having to list her deductible expenses, which reduces filing time and eliminates additional paperwork.
Other People Are Reading
-
Considerations
-
Some tax filers choose to itemize their deductions instead of taking a standard deduction if their list of deductions exceeds the standard amount. The IRS recommends that tax filers itemize their deductions if they had large uninsured medical or dental expenses over the previous year or if they paid interest and taxes on a home mortgage. Large contributions to charities or losses due to theft or property damage may result in greater deductions than standard deduction limits. Tax filers can itemize their deductions on Schedule A of Form 1040.
Size
-
For the 2010 tax year, single tax filers can take a standard federal deduction of $5,700. Married couples filing jointly and qualified widows take a standard deduction of $11,400. A head of household who is unmarried and has a dependent can take a federal deduction of $8,400. For the 2011 tax year, the IRS allows single individuals to take a deduction of $5,800, while married couples and widows can take a standard deduction of $11,600. Head of households can take a standard federal deduction of $8,500.
-
Exceptions
-
The IRS allows the blind and the aged to take a larger standard deduction. The IRS defines blindness as a vision condition where the filer cannot see better than 20/200 with glasses or contact lenses or his field of vision is restricted to 20 degrees or less. To qualify for the aged deduction, filers must be 65 years of age or older in the year in which they file. For the 2010 tax year, the standard deduction increases by $1,400 for each incidence of blindness or age. For example, a married couple aged 65 years of age or older with blindness qualifies for a total standard deduction of $17,000.
Reporting
-
Tax filers must submit their return for the 2010 tax year by April 18, 2011. On IRS Form 1040, filers may list either their itemized or standard deductions on line 40. The Form 1040 instructions offer a table that helps filers to calculate the amount of their standard deduction. Filers do not need to include any additional tax schedules when taking a standard deduction and do not have to provide proof of deductible expenses.
-
References
Resources
- Photo Credit tax forms image by Chad McDermott from Fotolia.com
