Jason Dinesen

Jason Dinesen

On Posted on by Jason Dinesen to Potpourri of Tax Topics

Glossary: Standard Deduction

Image courtesy of user "777546" on Pixabay.com
Image courtesy of user “777546” on Pixabay.com

The “standard deduction” is a deduction all taxpayers are entitled to. The deduction reduces taxable income.

The alternative to the standard deduction is “itemized deductions.” Itemized deductions include things such as mortgage interest, property taxes and charitable contributions. If the total of your itemized deductions is greater than your standard deduction, you’ll claim itemized deductions instead.

The amount of the standard deduction varies depending on your filing status. For 2015 returns, the standard deduction amounts were:

  • Single or Married Filings Separately: $6,300
  • Head of Household: $9,250
  • Married Filing Jointly: $12,600

For more tax terms, check out the Glossary page on this website.

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