Simply put, a standard deduction is an amount of your income that you do not need to pay tax for. Certain factors set by the IRS determine whether you are eligible for a standard deduction. However, if you use Schedule A from Form 1040 to itemize your deductions, you cannot claim the standard deduction.
What is Itemized Deduction?
Itemized deductions are the process of adding up all of your applicable deductions and deducting them from the amount of your income that can be taxed.
Standard Deduction vs. Itemized Deduction
In certain cases, itemized deductions can allow you to pay less tax than standard deductions. Regardless of the process you choose, Uncle Sam fills his pockets.
Factors Behind Standard Deduction
The following are factors that determine standard deduction:
The individual's income
The age of the individual
The individual's filing status
The marital status of the individual
Whether the individual has any disabilities
Who isn’t Eligible for Standard Deduction?
The following are not eligible for standard deductions:
Married individuals filing separately whose spouses have filed for itemized deductions
Individuals who filed for tax returns in less than a year
Individuals who classify as aliens
Funds such as partnership funds, estate and trust funds, etc.