
Standard deduction amounts For taxpayers younger than 65, the amounts are:
Standard deductions for older, visually impaired taxpayers
Based on the number of boxes checked, your standard deduction will be:
* If your 65th birthday is Jan. 1, the IRS considers you age 65 for the previous tax year and you may claim the larger standard deduction. ** You may qualify for the larger deduction even if you are partially blind by attaching a letter from your physician attesting to your limited vision. |
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Filing requirements, standard deductions for dependent taxpayers In this case, a dependent taxpayer who is younger than 65 and not blind can take as a standard deduction the greater of $850 or his or her earned income plus $300. This deduction amount, however, cannot exceed the basic standard deductions for the dependent taxpayer’s filing status. As with the basic standard deduction amounts, older and visually impaired taxpayers who also are dependents are allowed larger deduction amounts. If you can be claimed as a dependent of another taxpayer, you still have to file if you meet certain earning thresholds. Both single and married dependents must file a tax return if any of the following apply: more than $850 in unearned income; more than $5,150 in earned income; or gross income (a combination of earned and unearned money) that is larger than at least $850 or the gross amount plus $300. In addition, older taxpayers who can be claimed as dependents are allowed to earn more before they must file a return:
Itemized deductions You must file Form 1040 and Schedule A to itemize. Some itemized deductions are limited based on a taxpayer’s adjusted gross income. For 2007, the following limits apply to itemized deductions:
In addition, overall itemized deductions also could be reduced if a taxpayer’s AGI exceeds a certain amount, adjusted annually for inflation. For 2007 returns, the reduction of total itemized deductions begins for a taxpayer with an AGI of $150,500. This income level applies to single, head of household and married filing jointly taxpayers. Taxpayers who are married but file separate returns will see their itemized deductions reduced on AGI of $75,250 or more. |
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