Sentences with phrase «standard deduction on an income tax return»

A standard deduction on an income tax return is based on your specific circumstances.

Not exact matches

Under the new bill, the standard deduction — the amount taxpayers can subtract from their taxable income without listing, or itemizing, deductions on their tax returns — will rise to $ 12,000 for individuals and $ 24,000 for married couples.

In a 2002 study, the Congressional Research Service (CRS) estimated that roughly 950,000 tax filers would have saved more than $ 470 million on their 1998 tax returns if they had itemized mortgage interest and state and local income taxes instead of claiming the standard deduction.

The state Senate bill approved Tuesday would remove the existing state prohibition on itemizing a state income tax return if the taxpayer decides to take the higher federal standard deduction.

Taxpayers have two options on tax returns: they can take a standard deduction, which is an amount that all taxpayers are allowed to deduct in calculating taxable income, or they can take their itemized deductions.

For example, to claim the higher standard deduction on your 2017 income tax return, you must be born before January 2, 1953.

The amount of your standard deduction may be reduced if you are claimed as a dependant on another person's income tax return.

On your federal return for 2016, you claimed the standard deduction rather than itemized deductions — meaning you didn't claim a deduction for state income taxes paid.

If you itemize deductions on your federal tax return (instead of using the standard deduction), you are allowed to include state income taxes and property taxes paid during the year in your deduction amount.

My scenario isn't particularly «generous» — only a high wage earner would qualify for an $ 800,000 mortgage, and the interest paid on that mortgage, as well as the property tax, significantly exceeds the standard deduction, as does the state income tax likely paid by that wage earner (as an example, I pay tens of thousands of dollars in state income tax in California — all deductible from my federal tax return).

The standard tax deduction will nearly double, which could save you a couple hundred bucks on future tax returns (household incomes of $ 50K — $ 75K are expected to save an extra $ 870 / per year).

The Tax Foundation, a conservative think tank, says the deduction is a giveaway for those with high incomes and big houses, because they are more likely to itemize their deductions rather than claim the standard deduction on their tax returTax Foundation, a conservative think tank, says the deduction is a giveaway for those with high incomes and big houses, because they are more likely to itemize their deductions rather than claim the standard deduction on their tax returtax returns.

If you claimed the standard deduction on your federal income tax return, you must also claim the standard deduction on your Virginia return.