Itemized Deductions on Tax Return

Itemized deductions are deducted from listing them on Form 1040, Schedule A. All tax deductible amounts you paid during the tax year for certain items such as medical and dental expenses, state income tax, local income tax, real estate tax, state personal property tax, local personal property tax, home mortgage interest, and gifts to charity are together called itemized deductions. The standard deduction consists of two parts mainly – the basic standard deduction and then an additional amount for age, blindness or both. The standard deduction only differs in case you are shown as dependent on somebody else’s tax returns.

Standard deduction or itemized deduction, whichever is larger is then considered for the tax return since it will lower the amount of federal income tax you will owe or increase the amount of tax refund you will receive. As mentioned earlier, the standard deduction will depend on the filing status. If the person is single, the standard deduction is $5,150. Married filing a joint tax return or widow(er) with a dependent child will have a standard deduction of $10,300. If the person is married and still files a separate tax return, the standard deduction is $5,150. The standard deduction for the head of the household would be $5,150.