Explaining the Standard Deduction
The standard deduction reduces the amount of your income that is subject to tax. It is a dollar amount and depends on various things including your age and filing status.
The amount of your standard deduction can change from year to year and our guide explains everything you need to know. Keep reading to learn more.
The Standard Deduction
The amount of standard deduction that you can claim depends on your filing status. There is a different dollar amount depending on whether your filing status is:
- Single or married filing separately
- Married filing jointly or Qualifying widow(er) with dependent child
- Head of household
In the 2011 tax year, the standard deduction amounts are:
- $5,800 – Single
- $11,600 – Married filing jointly
- $5,800 – Married filing separately
- $8,500 – Head of household
- $11,600 – Qualifying widow(er)
Higher Standard Deduction
If you are a taxpayer aged 65 or over, if you are blind (or both) than you can claim an additional standard deduction.
The additional amount based on your age will be granted if you or your spouse are aged 65 or over on the last day of the tax year.
The additional amount for blindness will be granted if you or your spouse are totally or partially blind on the last day of the tax year. Partial blindness requires a certified statement from an eye doctor declaring that your field of vision is not more than 20 degrees or that you cannot see better than 20/200 vision on one eye even with glasses/contact lenses.
Additions to the Standard Deduction
There are also occasions when you can claim an additional standard deduction. For example, you can claim a net loss from a federally declared disaster.
The Reduced Standard Deduction
There are occasions where you will receive a lower standard deduction.
For example, if another person can claim you as a dependent on their tax return, the amount of your standard deduction is reduced. In this case, the amount of the standard deduction is generally restricted to $950 or your earned income for the year plus $300 (whichever is the greater). The amount of the standard deduction for someone who is a dependent cannot, however, be higher than the regular standard deduction amount.
When you can’t claim the Standard Deduction
There are various times when you can’t claim the standard deduction. These include:
- If you are claiming itemized deductions
- If you are married, your filing status is ‘married filing separately’ and your spouse is itemizing deductions
- If you have changed your annual accounting period and you are filing a return for a period of less than 12 months
- If you are a dual status or non resident alien during any part of the current tax year
As you cannot take both itemized deductions and a standard deduction, you will generally benefit by choosing the deduction that results in the lesser amount of tax that you owe.
What are the additional deduction amounts for 2011?
Stephen – thanks for your question. The additional amounts are:
> $1,450 for single or head of household
> $1,150 for married filing jointly, married filing separately, or qualifying widow(er)