What does the standard deduction mean?

[VolvoGirl]

Everyone gets to take a Standard Deduction amount off their income before the tax is calculated (it's a good thing - it lowers your income).  Unless their itemized deductions are more.  Itemized deductions are things like Medical, Gifts to Charity, State Income Taxes Paid, Mortgage Interest, Property Taxes, Car Registration fees, etc.


For 2016 the standard deduction amounts are:
Single 6,300 + 1,550 for 65 and over
HOH 9,300 + 1,550 for 65 and over
Joint 12,600 + 1,250 for each 65 and over
Married filing Separate 6,300 + 1,250 for 65 and over

Standard Deduction is on
1040 line 40
1040A line 24
For 1040EZ the Standard Deduction is combined with your Personal Exemption on line 5.

[fanfare]

the standard deduction is a fixed amount your adjusted gross income must exceed before you will pay tax.