Deductions (standard vs itemized)

Standard deduction - lower your income by one fixed amount.

• Fixed amount based on filing status.

• Documents for claiming standard deduction non-required.

• 65 or older or blind, dependent on someone else return

• Cannot take standard deductions if married filing separate and the spouse itemizes.

• If non-resident or dual status citizen during the year.

Itemized deduction - made up of a list of eligible expenses you can claim, whichever lowers your tax bill the most.

• Itemize deductions must use 1040 to list allowable deductions.

• Benefits if mortgage interest, unreimbursed medical or dental expense compared to income, charitable contributions.

• Taxpayer with standard deduction of 0 should itemize deduction

• Depend on eligible deductions includes medical and dental expenses exceeding 7.5% of AGI, maybe reduce if subject to AMT.

• Documents need receipts and supporting form for deductions claimed.