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 ?
We model the major components of the TCJA listed above except for the new deduction for pass-through businesses (34) focusing on the effects of the major tax changes that are linked to state income taxes: the changes to the standard deductions, personal exemptions, itemized deductions, and the CTC.
One key trend is that more people are taking the standard deduction, which has increased significantly, and fewer people are claiming itemized deductions, which have been restricted.
UNDER THE TAX CUTS AND JOBS ACT of 2017, the approximate doubling of the basic standard deduction amounts, along with major restrictions on many itemized deductions, will likely hurt the tax benefits of charitable giving for many individuals.
Some taxpayers leave money on the table by opting for the standard deduction rather than spending time to itemize their deductions.
Using a new modeling suite incubated by AEI's Open Source Policy Center, this paper evaluates stylized versions of middle-class tax relief options with respect to the average effective marginal tax rate (EMTR) on labor income, the number of taxpayers claiming the standard deduction, the number of taxpayers receiving tax relief, and the macroeconomic effects.
To see the effect of a higher flat tax standard deduction, the authors repeated the simulation by doubling the flat tax standard deductions:
These increases in exemptions, standard deductions and income limits will apply to federal income tax returns filed in early 2012 for tax year 2011.
* If you are blind or 65 years of age or older, you might be eligible to claim for additional standard deductions.
Tax rate brackets, standard deductions, personal exemptions and several other amounts are adjusted annually for cost-of-living increases.
* Standard Deductions: The standard deductions amount for single or separate taxpayers increased from $3,769 to $3,841 for tax year 2012.

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