Each year you are
eligible to reduce your taxable income by the amount of your qualified tax
deductions. You can do this by either
focusing on itemized deductions or a standard deduction.
Both of these amounts
are combined with your personal exemptions
and are used to calculate your adjusted gross income which is the amount you
will be taxed for each year.
Your standard deduction amount is calculated by a variety of
denominators including your filing status, age, and if you are blind you are
eligible for an increased standard deduction.
The standard deduction amount varies from year to year, but here are the
amounts for tax year 2013:
- Single $6,100
- Head of Household $8,950
- Married Joint Filing $12,200
- Married Individual Filing $6,100
·
Qualified
Widow/Widower $12,200
·
Dependent
$1,000-$6,100
These deductions amounts
have significantly increased over the past 4 years and the information below
needs to be taken into consideration when filing
your taxes.
Married But Filing
Individually
You would file
individually if you are married for a few reasons such as separation or you
were married during the tax year and someone else can claim you as a dependent
for the year.
Even if you are filing separately you must file the same type of returns. For example if your spouse is filing itemized
deductions you may not file a standard deduction. If you are not sure which way is the most
beneficial calculating both filing figures (itemized and standard) to see which
will give you the most tax savings.
Dependents Standard
Deduction Amount
As you may have noticed the
deduction amount for dependents has a wide range. In tax year 2013 you calculate dependents by
the greater of two calculations:
$1,000
OR
These amounts increased
by $50 from 2012.
Standard Deduction
For Age or Blindness
If you are over the age
of 65 or qualified as legally blind you can receive an additional standard
deduction. You calculate this amount by
adding it to your regular standard deduction.
The deduction is a flat rate of either:
Single or Head of House
Hold $1,500
For all other filing
status a flat rate of $1,200
This amount has also
increased by $50 for tax year 2012.
