What is the Standard Deduction for Federal Taxes?

Standard Deductions

The standard deduction is a dollar amount, adjusted annually for inflation, that reduces taxable income. Generally, you cannot take the standard deduction if you claim itemized deductions. Hence, in preparing your taxes, compare the applicable standard deduction to your itemized deductions, and choose the one with the higher dollar figure. Also, note that itemized deductions may increase your chances of audit. Where your itemized deduction is only marginally larger than the standard deduction, choose the latter. Where your itemized deduction is significantly larger than the standard deduction, consult a tax professional to assess risk. The tables below detail the 2009 through 2011 standard deductions.1

To find more practical tax strategies and deductions, we suggest that you read the monthly articles published online at the Bradford Tax Institute. We provide cutting-edge tax information for the self-employed, the one owner business, and the husband and wife owned business.

If you're already a subscriber to the Tax Reduction Letter, you will be prompted to log in when you CLICK HERE.

If you are not yet a subscriber, CLICK HERE. You'll get a no-obligation 7-day FREE trial during which you can read all of our helpful tax saving tips from the last two months. This trial is absolutely free and there are no strings attached.