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Standard Deduction

   Also found in: Financial, Wikipedia 0.01 sec.

The name given to a fixed amount of money that may be subtracted from the adjusted gross income of a taxpayer who does not itemize certain living expenses for Income Tax purposes.



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The Home Office Tax Deduction Simplification and Improvement Act of 2009 directs the Secretary of Treasury to establish an optional standard deduction to encourage greater use of the incentive.
Taxpayers and preparers need to consider the following RIA observation: Taxpayers who have qualified motor vehicle taxes for 2009 will have to determine which deduction maximizes their tax benefit for 2009: (i) A standard deduction that includes qualified motor vehicle taxes (see [paragraph] A-2812), (ii) An itemized deduction for state and local income taxes, plus a separate itemized deduction for qualified motor vehicle taxes (above and [paragraph] K-4518 et seq.
For an unmarried filer, the standard deduction amount is $5,350, which is doubled for married taxpayers filing jointly.
 
 
 
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