Tax Tip 2023-03<\/p>\n
One of the first decisions taxpayers must make when completing a tax return is whether to take the standard deduction or itemize their deductions. There are several factors that can influence a taxpayer\u2019s choice, including changes to their tax situation, any changes to the standard deduction amount and recent tax law changes.<\/p>\n
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Generally, most taxpayers use the option that gives them the lowest overall tax.<\/p>\n
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As taxpayers begin to think about filing their tax return, here are some things they should know about standard and itemized deductions.<\/p>\n
\u00a0<\/strong><\/p>\n Standard deduction<\/strong><\/p>\n The standard deduction amount increases slightly every year. The standard deduction amount depends on the taxpayer’s filing status, whether they are 65 or older or blind, and whether another taxpayer can claim them as a dependent. Taxpayers who are age 65 or older on the last day of the year and don’t itemize deductions are entitled to a higher standard deduction.<\/p>\n <\/p>\n Most filers who use\u00a0Form 1040<\/a>\u00a0can find their standard deduction on the first page of the form. The standard deduction for most filers of\u00a0Form 1040-SR, U.S. Tax Return for Seniors<\/a>, is on the last page of that form.<\/p>\n <\/p>\n According to the Instructions for Form 1040 and 1040-SR,<\/a> not all taxpayers can take a standard deduction, including:<\/p>\n <\/p>\n \u00a0<\/strong><\/p>\n Itemized deductions<\/strong><\/p>\n Taxpayers who choose to itemize deductions may do so by filing\u00a0Schedule A, Form 1040,\u00a0Itemized Deductions<\/a>. Itemized deductions that taxpayers may claim can include:<\/p>\n <\/p>\n Some itemized deductions, such as the deduction for taxes, may be limited. Taxpayers should review the instructions for\u00a0Schedule A Form 1040<\/a>\u00a0for more information on limitations.<\/p>\n \u00a0<\/strong><\/p>\n More information:<\/strong><\/p>\n\n
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