What is the Standard Deduction?
The standard deduction is a fixed amount that reduces your taxable income, allowing you to pay less in federal income tax. Instead of itemizing deductions, you can choose to take the standard deduction if it is larger than your total itemized deductions.
Key Points About the Standard Deduction
- Reduces Taxable Income: The standard deduction lowers your taxable income, which in turn reduces your tax liability.
- Optional Choice: You can choose between taking the standard deduction or itemizing deductions on your tax return. In most cases, taking the larger of the two will result in lower taxes.
- Form 1040 Filing: If you are filing Form 1040, you can find the standard deduction amount on the form or in the instructions. For Form 1040-SR filers, a Standard Deduction Chart is provided on the last page of that form.
- No Filing Required: You do not need to file a separate Standard Deduction Chart with your return — it is simply used for reference.
When to Use the Standard Deduction
You should consider taking the standard deduction if your total itemized deductions (such as medical expenses, charitable contributions, or state and local taxes) are less than the standard deduction amount for your filing status.
Where to Find More Information
For detailed guidance, refer to IRS publications and form instructions. The standard deduction is discussed in Form 1040 instructions and related publications.
Source:
Form 1040 Instructions
Publication 505
Publication 590-A
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.