, Answering FAQ'sTurboTax Employee
Watch this helpful video at the bottom of the page to discover the differences between standard and itemized deductions, and how TurboTax figures out which one is best for you.
What is a standard deduction?
A standard deduction is the dollar amount that can be deducted from income based on filing status. These amounts are determined by the IRS. See What is the Standard Deduction for 2013?
What are itemized deductions?
With Itemized deductions, you're allowed to deduct certain expenses such as mortgage interest, donations, medical expenses, and so forth. When all of the itemized deductions exceed the standard deduction, the total deduction amount begins to increase. Now additional deductions can reduce the amount of income being taxed, increasing your refund (or lowering any tax due). TurboTax helps you step through all of the deduction areas that may benefit you.
Enter all of your deductions!
Even if you do not expect to be able to itemize your deductions, always enter all deductions you have. Some items may not help you on your federal return, but may benefit you on your state return. Do not miss any deductions; enter everything and TurboTax will use them every place the deduction can help your tax situation!
- What is the Standard Deduction for tax year 2013?
- How do I go from the standard deduction to the itemized deduction, or vice-versa?