Ernst & Young Tax Guide 2018, 33rd Edition

Chapter 21 Standard deduction

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• Standard Deduction Amount
  • Higher Standard Deduction for Age (65 or Older)
  • Higher Standard Deduction for Blindness
  • Spouse 65 or Older or Blind
  • Examples
• Standard Deduction for Dependents
• Who Should Itemize

Note

IRS Publication 17 (Your Federal Income Tax) has been updated by Ernst & Young LLP for 2017. Dates and dollar amounts shown are for 2017. Underlined type is used to indicate where IRS text has been updated. Places where text has been removed are indicated by the sentence: Text intentionally omitted.

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Ernst & Young LLP will update the EY Tax Guide 2018 website with relevant taxpayer information as it becomes available. You can also sign up for email alerts to let you know when changes have been made.

Tip

You benefit from the standard deduction if your standard deduction is more than the total of your allowable itemized deductions.

Introduction

Taxpayers who do not itemize their deductions are eligible for the standard deduction. However, you should determine whether itemizing deductions or taking the applicable standard deduction produces greater tax savings. In determining the amount of your standard deduction, you must consider many factors, including filing status, age, blindness, unearned income, and whether or not someone is claiming you as an exemption. Higher deductions are allowed if you or your spouse is over age 65 or is totally or partially blind. On the other hand, if ...