Chapter 6: Standard Deduction Versus Itemized Deductions

Chapter 6 of the Free Tax Course is all about IRS' standard deduction versus itemized deductions. Choosing standard deduction or itemized deductions and how to claim them right are one of the most important parts of preparing your tax return. While most people just take standard deductions, itemized deductions may result in larger tax refunds from the IRS for some taxpayers. In this chapter, you will learn about differences between standard deduction and itemized deductions, compare them, learn about taxes paid which are deductible, determine which interest paid is deductible as well as many other items you can potentially itemize to claim larger refunds from the IRS.

Where to claim standard deduction or itemized deductions?

You have determined your total income and then subtracted out any adjustments to arrive at your adjusted gross income or AGI. If you have no adjustments, your AGI is the same amount as your total income on line 22 of the tax form 1040. You are now ready to subtract the deduction amount used from your adjusted gross income to figure out the taxable income. You can either subtract the:

• standard deduction or
• itemized deductions

If you have the choice, you should choose the method that gives you larger tax deductions, lowering your taxable income the most so you will owe the IRS the least amount of money.

Standard Deduction

• Standard Tax Deduction
  • Standard Deduction Charts
  • Standard Deduction Worksheet for Dependents

Itemized Deductions

• Medical and Dental Expenses
  • Deducting Medical Expenses
  • Nondeductible Medical Expenses
  • Transportation expenses
  • Lodging expenses
  • Other Tax Deductible Medical Expenses
• Taxes You Paid
  • Sales Taxes Deduction
  • Non Deductible Taxes and Fees
  • Taxes You Can Deduct
• Interest You Paid
  • Home Mortgage Interest Tax Deductions
  • Mortgage Points Tax Deduction
  • Are Points Tax Deductible?
  • Investment Interest
• Gifts to Charity
• Miscellaneous Tax Deductions