The main benefits of a single person using the income tax standard deduction are the time saved and the simplification of the tax preparation process, explains U.S. News & World Report. It precludes the necessity of compiling receipts and filling out extra paperwork, making tax time less stressful.Continue Reading
The standard deduction reduces a taxpayer's taxable income by a set amount, according to Bankrate. The government regularly adjusts standard deductions for inflation, and it offers higher standard deductions to individuals who are blind or at least 65 years old. Individuals who don't qualify for standard deductions include people who are married filing separately whose spouses itemize deductions, nonresident aliens, dual citizens and those whose tax period is less than 12 months.
The alternative to using the income tax standard deduction is itemizing deductions, as noted by Bankrate. Although this option is more complicated and takes more time, it saves more money for those qualifying for deductions for interest on home mortgages, state income or sales taxes, unreimbursed business expenses, medical care costs and charitable contributions. Taxpayers should estimate their itemized deduction total, compare it with their standard deduction and use the method that allows them the larger deduction amount, advises the IRS.Learn more about Income Tax