The standard IRS tax deductions are an option that can eliminate the need for you to itemize your tax return. But, taking the standard deductions when filing your taxes may not always be the best way for you to file.
How much is the standard deduction?
The standard deduction amount will be affected depending on how you file, your age, any disabilities, and whether or not you can be claimed by another taxpayer. Annually the government will adjust the standard deduction due to inflation. If you are either single or married but filing separately your standard deduction will be approximately $5,350.00.
If you are married and you file your returns jointly or you have a dependent then your standard deduction will increase to $10,700.00. If you claim head of household your standard deduction will then be $7,850.00. Your
standard deduction may also be decreased if your annual income exceeds a certain amount.
When to use standard deductions?
Taking the standard deduction may not always be beneficial for you. If you realize that you have a larger deduction with itemizing then you should itemize your return. If you find that you have more deductions by taking the standard deduction rather than itemizing then you should go with the standard deduction. You may not be able to take the standard deduction if you file separately and your spouse itemizes or if you are a non resident of the United States.
To find out more information about the federal standard deduction and limitations please visit TurboTax online.
TurboTax online offers free tax calculators to help you decide if you should itemize or go with the standard deduction.