Page 9 - Other Income for Individuals

THINGS TAXPAYERS SHOULD KNOW WHEN CHOOSING
BETWEEN STANDARD AND ITEMIZED DEDUCTIONS

Here are some details about the two methods to help people decide deduction

to take:
Standard deduction

The standard deduction is an amount that reduces taxable income. The amount

adjusts every year and can vary by filing status. 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.
Taxpayers benefit from the standard deduction if their standard deduction is more

than the total of their allowable itemized deductions. They can use the Interactive

Tax Assistant, How Much Is My Standard Deduction? to determine the amount their
standard deduction and if they should itemize their deductions.