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 ?
Some taxpayers leave money on the table by opting for the standard deduction rather than spending time to itemize their deductions.
Assuming the preceding proposals are enacted, more taxpayers would take the larger standard deduction rather than itemizing deductions.
The analysis finds that either doubling the standard deduction or expanding the brackets for the 10 or 15 percent tax rates results in lower EMTRs for taxpayers in the middle class, but that these policies have quite different effects both within the middle class and across the aggregate economy.
Simulated flat tax standard deductions are: married filing jointly, $30,320; single, $15,160; head of household, $19,350; married filing separately, $15,160; and surviving spouse, $30,320.
These increases in exemptions, standard deductions and income limits will apply to federal income tax returns filed in early 2012 for tax year 2011.
1) The standard deduction or the total itemized deductions; plus
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.
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.
09 per mile as the amount for both of these standard deductions, using the same updated Runzheimer data (through October 1990) as outlined above, except that only certain operating expenses (gasoline and oil) are taken into account in arriving at these standard deduction amounts.
These standard deductions are claimed by most taxpayers.

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