Standard deduction

The standard deduction is a set amount that taxpayers are permitted to deduct from their adjusted gross income, rather than itemizing individual deductions. The standard deduction is used by anyone who does not have a sufficient quantity of itemized deductions to use the itemization approach. The standard deduction amount is inflation-adjusted, and is set at a different amount for each classification of taxpayer. Those classifications are:

  • Head of household
  • Married filing separately
  • Married filing together
  • Single individual

An advantage of using the standard deduction is that people do not have to maintain records for their itemized deductions.

Related Courses

Family Tax Planning