Federal Income Tax Standard Deductions

The standard IRS tax deductions are an option that can eliminate the need for you to itemize your tax return. But, taking the standard deduction 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.

But wait–there’s more. Some people cannot claim a standard deduction. Like for instance, a married person whose spouse is itemizing his or her deduction will not be able to take a standard deduction alongside that action. If you’re a nonresidential alien, forget about it. And if there’s been a change in your accounting period, and you’re filing a return for less than twelve months, forget about it. Finally, if you’re taking part in an estate or trust, a partnership, or a common trust, then guess what, forget about it!

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.