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.
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.
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.
The following are factors that determine standard deduction:
The following are not eligible for standard deductions:
The standard deduction amounts for 2023 are: