Friday, January 23, 2009

IRS Raises The Standard Deduction

Inflation is a serious concern to everyone. The IRS knows this too. That’s why the IRS is raising the standard deduction for 2008. This is the basic deduction that all taxpayers get when they fill out their tax returns. The deduction is based on the taxpayer’s filing status. The 2008 standard deductions are as follows:

Filing Status Amount
Married filing jointly or qualifying widow or widower $10,900
Head of Household $ 8,000
Single $ 5,450
Married filing separately $ 5,450

When filing out your tax returns your should not take only the standard deduction if you qualify to take more deductions. If your itemized deductions are more than your standard deductions then you need to itemize! This can get very complicated and very confusing. The best advice I have is to consult a professional tax preparation firm.

1 comment:

Luv said...

is there standard deduction for a corporation also ??