The standard deduction is the portion of income not subject to tax that can be used to reduce your tax bill. The Internal Revenue Service (IRS) allows you to take the standard deduction if you do not itemize your deductions using Schedule A of Form 1040 to calculate taxable income.
What does the standard deduction cover?
The standard tax deduction is a flat amount that the tax system lets you deduct, no questions asked. Tax deductions allow individuals and companies to subtract certain expenses from their taxable income, which reduces their overall tax bill. That flat amount is called a “standard deduction.”
What do you need to know about the standard deduction?
Topic No. 551 Standard Deduction The standard deduction is a specific dollar amount that reduces the amount of income on which you’re taxed. Your standard deduction consists of the sum of the basic standard deduction and any additional standard deduction amounts for age and/or blindness.
Who are the exceptions to the standard deduction?
1 A married individual filing as married filing separately whose spouse itemizes deductions 2 An individual who was a nonresident alien or dual status alien during the year (see below for certain exceptions) 3 An individual who files a return for a period of less than 12 months due to a change in his or her annual accounting period
How can I claim the standard deduction online?
Free online tax-preparation services, like Credit Karma Tax®, make it particularly easy to claim the standard deduction. Through a series of lifestyle-based questions, the software can also help you determine which will give you the most tax benefit: the standard deduction or itemizing deductions.
What’s the standard deduction for single filers in 2017?
For 2017, the federal standard deduction for single filers and married folks filing separately is $6,350. It’s $12,700 if you’re a surviving spouse or you’re married and you’re filing jointly. If you’re the head of your household, it’s $9,350.