Whether to itemize deductions on your tax return depends on how much you spent
on certain expenses last year. Money paid for medical care, mortgage interest,
taxes, charitable contributions, casualty losses and miscellaneous deductions
can reduce your taxes. If the total amount spent on those categories is more
than your standard deduction, you can usually benefit by itemizing.
1.
Standard deduction amounts are based on your filing status and
are subject to inflation adjustments each year. For 2010, they are:
-
Single $5,700
-
Married Filing Jointly $11,400
-
Head of Household $8,400
-
Married Filing Separately $5,700
-
Qualifying Widow(er) $11,400
2. Some taxpayers have different standard deductions
The standard deduction amount depends on your filing status, whether you are 65
or older or blind and whether an exemption can be claimed for you by another
taxpayer. If any of these apply, you must use the Standard Deduction Worksheet
on the back of Form 1040EZ, or in the 1040A or 1040 instructions. The standard
deduction amount also depends on whether you plan to claim the additional
standard deduction for a loss from a disaster declared a federal disaster or
state or local sales or excise tax you paid in 2010 on a new vehicle you bought
before 2010. You must file Schedule L, Standard Deduction for Certain Filers to
claim these additional amounts.
3. Limited itemized deductions Your itemized deductions
are no longer limited because of your adjusted gross income.
4. Married Filing Separately When a married couple
files separate returns and one spouse itemizes deductions, the other spouse
cannot claim the standard deduction and therefore must itemize to claim their
allowable deductions.
5. Some taxpayers are not eligible for the standard deduction
They include nonresident aliens, dual-status aliens and individuals who file
returns for periods of less than 12 months due to a change in accounting
periods.
6. Forms to use
The standard deduction can be taken on Forms 1040, 1040A or 1040EZ. If you
qualify for the higher standard deduction for new motor vehicle taxes or a net
disaster loss, you must attach Schedule L. To itemize your deductions, use Form
1040, U.S. Individual Income Tax Return, and Schedule A, Itemized Deductions.
These forms and instructions may be downloaded from the IRS website at
http://www.irs.gov or ordered by calling 800-TAX-FORM (800-829-3676).
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