Standard Deduction
The Simplest Deduction
The standard deduction is a fixed amount that reduces taxable income. Most taxpayers choose it because it is simple and often provides significant tax savings without tracking deductible expenses.
- No receipts for deductible expenses are generally required.
- Amount varies by filing status.
- Updated periodically by tax law.
Note
Taxpayers generally choose either the standard deduction or itemized deductions, whichever provides the greater benefit.
Summary
The standard deduction offers a simple way to reduce taxable income.