Generally, if your standard deduction is greater than the sum of the itemized deductions for which you qualify, then you just take the standard deduction instead. The size of your standard deduction depends on a few factors: your age, your income and your filing status.

Are all taxpayers required to take the standard deduction?

The standard deduction reduces a taxpayer’s taxable income. It ensures that only households with income above certain thresholds will owe any income tax. Taxpayers can claim a standard deduction when filing their tax returns, thereby reducing their taxable income and the taxes they owe.

Can You claim a standard deduction on your state tax return?

However, you can never claim both in the same year. You will find that many states that impose an income tax will also allow you to claim a similar type of deduction on your state income tax return. The amount of your standard deduction depends on the filing status you qualify for.

What’s the standard deduction for the new tax year?

It reduces the amount of money you owe Uncle Sam. Tax deductions lower your tax burden by lowering your taxable income and you can either claim the standard deduction or itemize your deductions when you file. For tax year 2020 (what you file in early 2021) the standard deduction is $12,400 for single filers and $24,800 for joint filers.

What do I need to file my back tax return?

To file your back tax returns, you will need the W-2s or 1099 forms you received for those tax years to report your income. If you are eligible for deductions and credits, you must also gather any receipts or other supporting records that prove your eligibility to claim them.

Do you have to list deductions on your tax return?

You must list all the deductions on IRS Schedule A and include this schedule with your tax return. This is a lot more work than taking the standard deduction. You have to know what expenses are deductible and keep track of them.