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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.



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