Standard Deduction

Standard Deduction means:
a provision that allows a taxpayer to deduct, in lieu of itemized deductions, a certain amount of income from his or her gross income. Reduces, therefore, the income subject to tax and varies depending on filing status, age, blindness, and dependency. These amounts are indexed for inflation each year and are as follows for 1994:

Married couples filing jointly $6,350.

Heads of households 5,600.

Single individuals 3,800.

Married couples filing separately 3,175.

Former IRC (check if this IRC provision is current here) §63(c).

Description and Definition of Standard Deduction

A fixed deduction allowed from adjusted gross income (AGI) for taxpayers who do not itemize deductions. The amount depends on filing status, age, blindness, and whether you can be claimed as a dependent on someone else's return. Some taxpayers choose to take a standard deduction instead of itemizing all of their deductions. Unlike taxpayers who itemize deductions, you need no records to prove you deserve the standard deduction. Even if you didn't incur any deductible expenses you may still claim the full standard deduction. About two-thirds of all taxpayers use the standard deduction rather than itemize.