What is a Standard Deduction?

A standard deduction is a base amount of income that is not subject to tax and can be used to reduce a taxpayer’s adjusted gross income (AGI). A standard deduction can only be used if a taxpayer does not choose the itemized deduction method of calculating taxable income and is based on her/his filing status, age and whether she/he is disabled or claimed as a dependent on someone else’s tax return.

 

See Also:

Tax Time Treasure Hunt

Tax Facts for the Jobless

Write It Off

Tax Refund Allocation Dilemma

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