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The standard deduction is a specific amount that you can subtract from your taxable income before calculating your income tax liability. It is a dollar-for-dollar reduction, meaning that it directly reduces the amount of income that is subject to taxation. The standard deduction varies depending on your filing status and age.
These amounts are slightly higher than the standard deduction amounts for taxpayers under age 65. The additional deduction for seniors is intended to help offset the increased expenses that come with age, such as medical expenses and long-term care costs.
You can claim the standard deduction on your tax return by completing the appropriate line on the tax form. If you are filing Form 1040, you will enter the standard deduction amount on line 12. If you are filing Form 1040-EZ, you will enter the standard deduction amount on line 4.
In addition to the standard deduction, you may also be able to itemize your deductions. Itemizing deductions allows you to deduct certain expenses from your taxable income, such as medical expenses, charitable contributions, and mortgage interest.
If you itemize your deductions, you will need to compare the total amount of your itemized deductions to the standard deduction amount. You should choose the option that results in the lower taxable income.
For most taxpayers, the standard deduction is a better option than itemizing deductions. This is because the standard deduction is a flat amount that is not subject to any limitations. Itemized deductions, on the other hand, are subject to various limits and phase-outs.
Phase-out: The standard deduction is phased out for high-income taxpayers. For 2025, the phase-out begins at the following income levels:
The standard deduction is a valuable tax break that can help you reduce your taxable income. If you are age 65 or older in 2025, you will be eligible for a higher standard deduction amount. Be sure to consider your options and choose the deduction method that results in the lowest tax liability.
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