Can you help me understand the standard deduction and itemizing

[bluedeb · Accepted solution]

The difference between the standard deduction and itemized deduction comes down to simple math. The standard deduction lowers your income by one fixed amount. On the other hand, itemized deductions are made up of a list of eligible expenses (ex. mortgage interest, charitable contributions etc). You can claim whichever lowers your tax bill the most.

The standard deduction amounts are:

• For single or married filing separately — $12,550
• For married filing jointly or qualifying widow(er) — $25,100
• For head of household — $18,800

[MarilynG1]

The federal Standard Deduction is a fixed dollar amount, based on your filing status and age, that the IRS lets you take off (deduct) from your taxable income.

On the other hand, itemizing deductions allows you to list (itemize) your deductions on Schedule A.

After you enter your deductions in the 'Deductions & Credits' section, TurboTax will tell you which one is better for you (gets you the best refund).

Click this link for more detailed info on Standard/Itemized Deduction.