Barbara Weltman’s Books
- The Complete Idiot’s Guide To Starting an eBay® Business
- Bottom Line’s Very Shrewd Money Book
- The Complete Idiot’s Guide to Starting a Home-Based Business
- J.K. Lasser’s 1001 Deductions & Tax Breaks
- J.K. Lasser’s Small Business Taxes
- The Rational Guide to Building Small Business Credit
- Small Business Survival Book
Other books by Barbara Weltman:
- J.K. Lasser’s Online Taxes
- J.K. Lasser’s Finance and Tax for Your Family Business
- The Big Idea Book for New Business Owners
- J.K. Lasser’s New Tax Law Simplified 2004
- Your Parent’s Financial Security
- The Complete Idiot’s Guide to Raising Money-Smart Kids
- The Complete Idiot’s Guide to Making Money After You Retire
J.K. Lasser’s 1001 Deductions & Tax Breaks 2008
Standard Deduction versus Itemized Deductions
Every taxpayer, other than someone who can be claimed as a dependent on another taxpayer’s return, is entitled to a standard deduction. This is a subtraction from your income, and the amount you claim is based on your filing status. The table shows the standard deduction amount.
In addition to the basic standard deduction, certain taxpayers can increase these amounts. An additional standard deduction amount applies to those age 65 and older and for blindness. For 2007, the additional amount is $1,300 for individuals who are not married and are not a surviving spouse and $1,050 for those who are married or a surviving spouse.
Standard Deduction Amounts for 2008
| Filing Status | Standard Deduction |
|---|---|
| Married filing jointly | $10,900 |
| Head of household | $8,000 |
| Single (unmarried) | $5,450 |
| Qualifying widow(er) (surviving spouse) | $10,900 |
| Married filing separately | $5,450 |
Example
In 2008, you are single, age 68, and not blind. Your standard deduction is $6,800 ($5,450 + $1,350).
Instead of claiming the standard deduction, you can opt to list certain deduction separately (i.e. customize them).
Itemized deductions include:
- Medical expenses.
- Taxes.
- Interest payments.
- Gifts to charity.
- Casualty and theft losses.
- Unreimbursed employee business expenses.
- Investment expenses.
- Legal fees to earn income.
- Gambling losses.
- Estate tax payments on income in respect of a decedent.
You cannot claim any additional standard deduction that applies to those 65 or older and/or blind if you choose to itemize deductions in lieu of claiming the basic standard deduction amount.