2020 Standard Deduction Amounts
There are two main types of tax deductions: the standard deduction and itemized deductions. The IRS allows you to claim one type of tax deduction, but not both.
Tax deductions lower your taxable income. They are subtracted from your Adjusted Gross Income (AGI).
Here are the 2020 standard deductions amounts for each filing status:
Single $12,400
Married Filing Jointly or Qualifying Widow(er) $24,800
Married Filing Separately $12,400
Head of Household $18,650
There is an additional standard deduction of $1,300 for taxpayers who are over age 65 or blind. The amount of the additional standard deduction increases to $1,650 for taxpayers who are unmarried.
When you itemize your deduction on the Schedule A, you would include mortgage interest, property taxes, medical expenses if over a certain amount and charitable gifts.
Many people are in a better financial situation if they take the standard deduction instead of itemizing their deductions.
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