Whats the difference between standard deduction or itemized?

[AlanT222 · Accepted solution]

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 allow you to list (itemize) your deductions on Schedule A.

The IRS lets you either choose the "bundled" Standard Deduction or go "a la carte" and itemize your deductions. Naturally, most taxpayers want the one that gives them the most money back. After you've completed the Deductions & Credits section of TurboTax, we'll let you know which deduction gives you the biggest tax break.

Please click here for a fun video explanation.