Standard deduction - lower your income by one fixed amount.
Fixed amount based on filing status.
Documents for claiming standard deduction non-required.
65 or older or blind, dependent on someone else return
Cannot take standard deductions if married filing separate and the spouse itemizes.
If non-resident or dual status citizen during the year.
Itemized deduction - made up of a list of eligible expenses you can claim, whichever lowers your tax bill the most.
Itemize deductions must use 1040 to list allowable deductions.
Benefits if mortgage interest, unreimbursed medical or dental expense compared to income, charitable contributions.
Taxpayer with standard deduction of 0 should itemize deduction
Depend on eligible deductions includes medical and dental expenses exceeding 7.5% of AGI, maybe reduce if subject to AMT.
Documents need receipts and supporting form for deductions claimed.
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