The video below explains the federal Standard and Itemized Deductions; how they are calculated and how to determine which should be claimed on your federal tax return.

Key Takeaways

  • Standard Deduction is the minimum deduction allowed to taxpayers.  Taxpayers can claim the Itemized Deduction if larger.
  • Standard Deduction is based on tax year, filing status, dependency status, age, and whether or not blind.
  • Refer to the Instructions Form 1040 for the applicable tax year for a detailed explanation of the various Standard Deduction amounts.
  • Itemized Deduction is the total of four main categories: medical expenses, taxes paid, interest paid, and charitable donations.  Limitations may apply at each of these categories.
  • Refer to the Instructions to Schedule A for the applicable tax year for a detailed explanation of allowable Itemized Deductions.