What is the Federal Standard Tax Deduction for 2013
The
standard tax deduction is a dollar amount that reduces your taxable income and
is based on factors such as your age and filing status. The standard deduction is the amount of
tax-free income you deduct before the rest of your income is taxed by the IRS.
The standard rates typically increase every year to keep up with inflation.
To Itemize or Not
Tax software provides free tax tools to help you determine which method will be better for your personal situation. TurboTax offers a free tax return calculator which allows you to estimate your tax return for free. You can see what your tax return will look like if you take the standard deduction, and you can run the numbers again using the itemizing method to see which path is best for you.
If you choose to itemize you have to know which items qualify for a tax deduction. Most people who choose this path will have mortgage interest deductions, large charitable donations, medical expenses, property taxes, real estate taxes, mortgage insurance deductions, investment interest, state income taxes, local income taxes, local sales tax, job-related expenses, and other miscellaneous expenses which qualify.
Claiming Itemized Deductions on Schedule A
You must attach a Schedule A to your 1040 tax form if you choose to claim itemized deductions. Not every single deduction or credit needs to be listed on a Schedule A. Knowing where to claim certain credits and deductions is the tricky part of tax filing. Tax software will take care of that for you by placing your information into the correct boxes and tax forms for you.
There are many qualifications and factors that determine how much of a deduction you can qualify for. Your filing status, age and so on are all factors that go into determining your standard tax deduction amount.
The Standard Deduction Amounts for 2013:
· Single: $6,100
· Head of Household: $8,950
· Married Filing Jointly: $12,200
· Married Filing Separately: $6,100
· Qualifying Widow/Widower: $12,200
· Dependent: $1,000-$6,100
Married Filing Separately
If you are married there are special rules for married couples who are planning to or do file separate returns. It is necessary that both you and your spouse take the standard deduction or you both can itemize your deduction. You must do either or and you cannot choose opposites.
When married and filing separately it is always a good idea to figure your taxes both ways in order to determine which method is the best way to go for overall tax savings.
If you are over 65 or are legally blind, you will receive additional standard deduction. This figure is determined by adding the individual’s personal deduction, based on their filing status, plus the additional amount.There are also additional amounts for victims of disaster related casualty losses in presidentially declared disaster areas.
The additional standard deduction amounts for people over 65 and legally blind in 2013:
· Single/Head of House Hold$1,500
· Married filing jointly/ Married filing separately/ Qualifying widow $1,200
With the varying factors it is important to understand your status when determining your standard deduction.You can take all of the guess work out of tax filing by using TurboTax. You will be given step by step guidance through each line of your tax return and you are guaranteed the biggest tax refund possible.
To Itemize or Not
Tax software provides free tax tools to help you determine which method will be better for your personal situation. TurboTax offers a free tax return calculator which allows you to estimate your tax return for free. You can see what your tax return will look like if you take the standard deduction, and you can run the numbers again using the itemizing method to see which path is best for you.
If you choose to itemize you have to know which items qualify for a tax deduction. Most people who choose this path will have mortgage interest deductions, large charitable donations, medical expenses, property taxes, real estate taxes, mortgage insurance deductions, investment interest, state income taxes, local income taxes, local sales tax, job-related expenses, and other miscellaneous expenses which qualify.
Claiming Itemized Deductions on Schedule A
You must attach a Schedule A to your 1040 tax form if you choose to claim itemized deductions. Not every single deduction or credit needs to be listed on a Schedule A. Knowing where to claim certain credits and deductions is the tricky part of tax filing. Tax software will take care of that for you by placing your information into the correct boxes and tax forms for you.
There are many qualifications and factors that determine how much of a deduction you can qualify for. Your filing status, age and so on are all factors that go into determining your standard tax deduction amount.
The Standard Deduction Amounts for 2013:
· Single: $6,100
· Head of Household: $8,950
· Married Filing Jointly: $12,200
· Married Filing Separately: $6,100
· Qualifying Widow/Widower: $12,200
· Dependent: $1,000-$6,100
Married Filing Separately
If you are married there are special rules for married couples who are planning to or do file separate returns. It is necessary that both you and your spouse take the standard deduction or you both can itemize your deduction. You must do either or and you cannot choose opposites.
When married and filing separately it is always a good idea to figure your taxes both ways in order to determine which method is the best way to go for overall tax savings.
If you are over 65 or are legally blind, you will receive additional standard deduction. This figure is determined by adding the individual’s personal deduction, based on their filing status, plus the additional amount.There are also additional amounts for victims of disaster related casualty losses in presidentially declared disaster areas.
The additional standard deduction amounts for people over 65 and legally blind in 2013:
· Single/Head of House Hold$1,500
· Married filing jointly/ Married filing separately/ Qualifying widow $1,200
With the varying factors it is important to understand your status when determining your standard deduction.You can take all of the guess work out of tax filing by using TurboTax. You will be given step by step guidance through each line of your tax return and you are guaranteed the biggest tax refund possible.