A standard deduction amount for the 2014 tax filing year was $6,200 for an individual filer, as TurboTax explains. Married couples filing jointly saw a $12,400 standard deduction for the 2014 tax year.Continue Reading
For the head of household filing designation, the 2014 tax year had a standard deduction of $9,100, notes TurboTax. The amount of the deduction is annually adjusted based on inflation.
Taxpayers can use the standard deduction, or they can itemize deductions for the tax year. When itemizing, taxpayers list the allowable deductions, such as property taxes and mortgage interest paid, reports the IRS. The easiest approach is to use the standard deduction, but itemizing often leads to a bigger total deduction. Taxpayers should keep receipts and organized tax records if they plan to choose itemizing. Other allowed deductions are home ownership deductions and charitable contribution deductions.
CNN explains that when a taxpayer takes the standard deduction, that amount is subtracted from the taxpayer's gross income to determine the taxable income. A couple who files jointly with a gross income of $95,000 and the standard deduction of $12,400 has a taxable income of $82,600. If a taxpayer uses a tax preparation program, the program advises which deduction would be more beneficial for the taxpayer to take, according to TurboTax.Learn more about Income Tax