tax deduction & standard deduction

Tax deduction

The individual tax payer is allowed certain deductions to reduce their "taxable income."

There are two basic types of deductions:

1. There is the standard deduction.
2. There is itemized deductions.

Standard Deduction

The IRS provides each tax payer a predetermined (standard) deduction for him/her self and dependents (such as a spouse and/or children below a certain age).

In order to receive more of a deduction than the standard deduction(s) the individual must have legitimate deductions that exceed the amount of the standard deduction(s).

If the individual's total allowable deductions are less than the standard deduction then the individual would receive the standard deduction.