What standard deduction?

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What exactly is the standard deduction and how do you know who qualifies?

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http://www.bankrate.com/brm/itax/tips/20010220a.asp

There are certain items that may be used to lower your adjusted gross income, therefore lowering your taxes. Medical care, mortgage interest, charitable contributions, state and local taxes are some of the items that can be deducted. The standard deduction eliminates the necessity of itemizing (and having backups) of these expenses.

Any taxpayer can use the standard deduction. It is only when your expenses would give you a more favorable tax break, that it would pay NOT to use the standard deduction, and to itemize.

Or let's put it another way. If you are asking the question, you probably are best off using the standard deduction.

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If i recall correctly from filing my taxes just the other night, the standard deduction currently is $4500.00 if you are filing individually.

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You can claim mortgage interest? What a tax utopia!

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Yeah, but there's a hell of a transfer tax on machine guns, Wilso.

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Not too many years ago all interest payments were deductable, even credit card interest. Now it's only mortgages and a few exceptions. Lobbyists win some and lose some.

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Check this out:

http://www.irs.gov/pub/irs-pdf/i1040sa.pdf

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Thanks for the answer. I understand now. Smile

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What standard deduction?

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