Overview
Tax deductions allow you to reduce your taxable income and also your tax bill. A tax deduction differs from a tax credit, which is applied directly to your tax bill, reducing it dollar for dollar.
Most people qualify for the standard deduction: $5,700 for Single and Married Filing Separately, $11,400 for Married Filing Jointly and Qualifying Widow(er), and $8,350 for Head of Household.
If itemized deductions are more than the standard deduction, itemizing will save you more.
You can claim above-the-line deductions whether you itemize or not.
Schedule C filers may qualify for additional deductions.
The standard deduction is a fixed dollar amount that reduces the amount of income on which you pay tax on your tax return. The amount of the basic standard deduction depends upon your tax return filing status. However, if you can be claimed as a dependent on someone else’s tax return, your standard deduction amount may be different. In some cases, the standard deduction on your tax return can consist of two parts, the basic standard deduction, and an additional standard deduction amount for age, blindness, or both.
If a person is born or dies before the end of his or her tax year, the tax year is considered to cover a 12-month period.
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