Standard Deduction
The standard deduction is a dollar amount that reduces the amount of income on which you are taxed. In general, the standard deduction is adjusted each year for inflation and varies according to your filing status. You cannot take the standard deduction if you itemize deductions.
Your standard deduction consists of the basic standard deduction and any additional standard deduction for age or blindness.
The basic standard deduction of an individual who can be claimed as a dependent on another person’s tax return is the greater of:
- An amount specified by law, or
- The individual’s earned income plus a specified amount (but the total cannot be more than the basic standard deduction for his or her filing status)
The additional standard deduction consists of the sum of any additional amounts for age or blindness. The additional amount for age will be allowed if you are age 65 or older at the end of the tax year. You are considered to be 65 on the day before your 65th birthday. For the definition of blindness, refer to Publication 501, Exemptions, Standard Deduction, and Filing Information. The additional amount for blindness will be allowed if you are blind on the last day of the tax year. For example, a single taxpayer who is age 65 and blind would be entitled to a basic standard deduction and an additional standard deduction equal to the sum of the additional amounts for both age and blindness.
For 2010, the standard deduction is as follows:
Single or Married Filing Separately: $5,700
Married Filing Jointly or Qualifying Widow (er) with dependent child: $11,400
Head of Household: $8,400
*An additional $1,400 is added to the above standard deduction for each instant the taxpayer or spouse is 65 and older or blind.