What does standard deductind mean?

[baskerville1-]

what does standard deductions mean

[bluedeb · Accepted solution]

The standard deduction is a specific dollar amount that reduces the amount of income on which you're taxed. Your standard deduction consists of the sum of the basic standard deduction and any additional standard deduction amounts for age and/or blindness.

The 2022 standard deduction is $12,950 for single filers, $25,900 for joint filers or $19,400 for heads of household. Those numbers rise to $13,850, $27,700 and $20,800, respectively, for tax year 2023.

[Vanessa A]

When you file your return, you have two options.  You can take the standard deduction or you can itemize your deductions.  As bluedeb mentioned, the standard deduction is a fixed number that is based on your filing status.  

However, for a homeowner, or someone with a lot of medical expenses or charitable donations, they may benefit more from taking an itemized deduction. Itemized deductions for 2022 include Mortgage Interest, State and Local taxes up to $10,000 including property taxes, medical expenses in excess of 7.5% of your AGI and charitable contributions.  If these add up to more than your standard deduction, it will lower your taxable income even more than the standard deduction which will then lower your tax liability.  So, if you have taxable income, and own a home, pay taxes this may make a difference in your return, especially for single people who have a standard deduction of $12,950. 

Sometimes it is best to enter your itemized expenses to see which way you make out better. After you enter them, TurboTax will choose which deduction is best for your situation. 

[bluedeb]

@baskerville1-  the program will pick the best deduction for you from the information you enter into your return.  If your Itemized Deductions (if you have any) are higher than your Standard Deduction, the program will suggest the best option for you. 

If your Standard Deduction is higher the program will pick that.