standard deduction

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Standard deduction

The IRS-specified amount by which a taxpayer is entitled to reduce income an alternative to itemizing deductions.

Standard Deduction

In American tax law, the portion of an individual's or couple's income that is not taxed. The standard deduction is taken after computing the adjusted gross income. Taxpayers have the option of choosing between the standard deduction and making itemized deductions, based on medical expenses or local taxes paid. Itemized deductions may or may not result in a larger percentage of income that is tax free, and taxpayers usually take the larger deduction. The amount in the standard deduction varies from year to year, depending on inflation and a person's filing status. However, it is higher for persons over age 65 and blind persons.

standard deduction

The minimum deduction from income allowed a taxpayer for calculating taxable income. Individuals with few itemized deductions elect the standard deduction in place of itemizing deductions. Formerly called zero bracket amount.
References in periodicals archive ?
lowered the ammout of federal tax withheld from their workers' paychecks, reflecting lower tax rates for most people and a larger standard deduction for married couples.
Taxpayers are entitled to a standard deduction which is based upon their filing status.
The standard deduction for 1995 is now $6,550 for surviving spouses and married individuals filing joint returns, $5,750 for heads of households, $3,900 for unmarried individuals, and $3,275 for married individuals filing separate returns.
This provision of the Code does not call for indexing based on inflation as do certain other provisions such as the Section 1 tax rate tables, the Section 63 standard deduction amounts, and the Section 151 personal exemption amount.
If the taxpayer's income from the previous year is unchanged, the compounding effect of indexed tax brackets, standard deductions and personal exemptions will result in that individual paying less in state taxes for the 2007 tax year.
The new standard deduction is SI 1,900 for married couples filing a joint return (up $300), $5,950 for singles and married individuals filing separately (up $150) and $8,700 for heads of household (up $200).
It phased in (1) an increase to the standard deduction for married filing jointly (MFJ) to twice that of a single taxpayer by 2009, (2) an increase in the 15% bracket for MFJ to twice that of a single taxpayer by 2008 and (3) changes to the earned income credit.
Because standard deductions (as well as Social Security wage bases, personal exemptions, tax table rates, etc.
And although the standard deductions have recently been raised to $4,750 for single taxpayers, $9,550 for married taxpayers filing a joint return and $7,000 for head of household taxpayers, taxpayers who itemize their deductions can drastically reduce their liability to the IRS.
At current tax rates (assuming both Federal and New York State standard deductions, but no others), her tax in New York City would be $69,603.
Deductions, Exemptions, Estate Tax Standard Deductions - In 2003, the standard deduction amounts rise to: $7,950 (filing jointly and surviving spouse), $3,975 (marrieds filing separately) $4,750 (single) and $7,000 (head of household).

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