Standard Deduction PDF Print E-mail
Written by Administrator   
Friday, 05 February 2010 01:08

The standard deduction is a dollar amount that reduces the amount of income subject to tax. You cannot take the standard deduction if you are claiming itemized deductions.

The amount of standard deduction is based on a taxpayer's filing status. The standard deduction amount can change from year to year depending upon inflation.

Higher Standard Deduction

There is an additional deduction amount for taxpayers age 65 or older, are blind, or both.

The additional amount for age will be allowed if you or your spouse are age 65 or older on the last day of the tax year. The IRS considers you 65 on the day before your birthday.

The additional amount for blindness will be allowed if you or your spouse are totally or partly blind on the last day of the tax year. If you are partly blind, you must get a certified statement from an optometrist or eye doctor declaring you cannot see better than 20/200 vision in one eye (even with eye glasses or contact lenses), or that your field of vision is not more than 20 degrees.

Other Additions to Standard Deduction

You may also claim an addition to the standard deduction for:

  • State and local real estate taxes – add up to $500 for single filers ($1,000 for joint)
  • Net loss from a federally declared disaster – add amount of loss from Form 4684
  • Sales tax or excise taxes on certain new motor vehicles purchased after Feb. 16, 2009 – add amount paid on first $49,500 of vehicle's cost (income limits apply)

These additions are claimed on Schedule L, new for 2009, and add to the basic standard deduction and any increased standard deduction for being 65 or older, or blind, or both.

Reduced Standard Deduction

If you can be claimed as a dependent on another person's tax return, the amount of the standard deduction is reduced. Generally, the amount of the standard deduction is limited to the greater of $950 or your earned income for the year, plus $300. The amount of the standard deduction for a dependent cannot be higher than the regular standard deduction amount.

Non-Qualifying Individuals
  • A married person whose filing status is married filing separately and whose spouse is itemizing deductions
  • An individual who is a nonresident alien or dual-status alien during any part of the current tax year. Dual status occurs when you are considered both a nonresident and resident alien during the same year.
  • An individual who changes his or her annual accounting cycle and is filing a return for a period of less than 12 months
2009 Standard Deduction Amounts

Under Age 65 on December 31

Filing Status Deduction Amount
Single or Married filing separately $5,700
Married filing jointly or Qualifying widow(er) with dependent child $11,400
Head of household $8,350

Over Age 65 or Blind

You are at least 65 True False
You are blind True False
Your spouse at least 65 True False
Your spouse is blind True False
Filing Status Number of True Statements Standard Deduction
Single 1 $7,100
2 $8,500
Married filing jointly or 1 $12,500
Qualifying widow(er) 2 $13,600
3 $14,700
4 $15,800
Married filing separately 1 $6,800
2 $7,900
3 $9,000
4 $10,100
Head of household 1 $9,750
2 $11,150
Last Updated on Friday, 05 February 2010 01:15
 

News Flash

Tax Facts for 2009

The IRS updates several tax-related amounts each year to take into account the cost of living adjustments due to inflation. Here's a quick summary of all the essential tax figures for the year 2009.

Standard Deductions

Single: $5,700
Head of Household: $8,350
Married Filing Joint: $11,400
Married Filing Separately: $5,700
Qualifying Widow/Widower: $11,400
Dependent: $950-$5,700*
Additional Amount if Blind: $1,100 (for married filing joint, married filing separately, or qualifying widow); $1,400 (for single and head of household)
Additional Amount if age 65 or older: $1,100 (for married filing joint, married filing separately, or qualifying widow); $1,400 (for single and head of household).
More information about the standard deduction.
* Dependents must calculate their standard deduction using an IRS Worksheet.

Personal Exemptions

Per taxpayer and dependent: $3,650
More information about personal exemptions.

Phaseout of Personal Exemptions

The amount you can claim for personal exemptions starts to be reduced (or "phased out") once you reach certain income thresholds. If your income is within these ranges, your personal exemptions will be reduced. If your income exceeds the amounts listed below, your personal exemption is $2,433.
Single: $166,800 - $289,300
Head of Household: $208,500 - $331,000
Married Filing Joint: $250,200 - $372,700
Married Filing Separately: $125,100 - $186,350
Qualifying Widow/Widower: $250,200 - $372,700

More information about the personal exemptions.

Filing Requirement Thresholds

You are required to file a tax return if your income exceeds the combined total of your standard deduction and personal exemption. Here's the 2009 filing requirement thresholds:
Single: $9,350 ($10,750 if age 65 and over)
Head of Household: $12,000 ($13,400 if age 65 and over)
Married Filing Joint: $18,700 ($19,800 if one spouse age 65 and over; $20,900 if both spouses age 65 and over)
Married Filing Separately: $3,650 (any age)
Qualifying Widow/Widower: $18,700 ($19,800 if age 65 and older)

Retirement Plan Limits

You can save for retirement up to the maximum dollar limit. Maximum contributions vary by the type of retirement plan:
Traditional or Roth IRA: $5,000 ($6,000 if age 50 or older)
SEP IRA: $49,000
SIMPLE IRA: $11,500 ($14,000 if age 50 or older)
401(k) plan: $16,500 ($22,000 if age 50 or older)
403(b) plan: $16,500 ($22,000 if age 50 or older)
457 plan: $16,500 ($22,000 if age 50 or older)
Defined Contribution Pension: $49,000
Defined Benefit Pension: $195,000
More information about retirement planning.
*If you fund both a traditional and Roth IRA, your total contribution to cannot exceed $5,000 combined (or $6,000 if age 50 or older).
**SEP IRA contributions are calculated on an IRS worksheet. Your maximum contribution may be less than $49,000.

Standard Mileage Rate for 2009

You can deduct the cost of driving a vehicle for business-use, for traveling to a doctor, when relocating for a new job, or when you are engaged in charitable activities. The 2009 standard rates for mileage are:

  • 50 1/2 cents per mile for business (Jan 1 - June 30),
  • 58 1/2 cents per mile for business (July 1 - Dec 31), and
  • 19 cents per mile for business (Jan 1 - June 30), and
  • 27 cents per mile for business (July 1 - Dec 31), and
  • 14 cents per mile for charitable service.

More information about deducting car and truck expenses.

Sources: Internal Revenue Service, Revenue Procedure 2008-66 (pdf), IR-2008-117, IR-2008-118, and IR-2008-131.

Advertisments