Taxes Are Easy when You Take the Standard Deduction

Do you keep all of your receipts of items purchased throughout the year? Do you request receipts every time you donate a bag of clothing? Do you tabulate all your medical premiums and expenses? If you are one of those people who meticulously keep track of all that, take a timeout and see if all that work is really necessary.

The Standard Deduction is more than you think!

This year (for filing 2009 tax returns) the standard deductions are:

$5,700 for a single filer

$8.350 for a head of household (i.e. a single parent)

$11,400 for a married couple filing jointly

If all of your receipts do not add up to MORE than these amounts, don't even worry about adding them all up. Skip all that math work and enter in the Standard Deduction that fits your filing status.

If your Medical Expenses don't total more than 7.5% of your income, don't bother tabulating them!

You are only allowed to deduct the out-of-pocket costs that are OVER 7.5% of your annual income. Unless you had a catastrophic injury or long-term hospitalization, chances are your medical expenses are not going to come anywhere near that amount. Remember if your monthly insurance premium is automatically deducted by your employer, it is probably pre-tax and therefore cannot be counted in your medical expenses for a deduction.

If you have Children Take the Standard AND...

Do the worksheets for Child Tax Credit, Additional Child Tax Credit and EIC (Earned Income Credit). Many families with children will be able to take the Standard Deduction AND get at least one of these other credits too!

Read the Instructions Booklet

Many things such as some real estate taxes and mortgage interest, can still be deducted up to a certain amount even if you claim the Standard Deduction and don't itemize. Read filing the instructions carefully. They really do help you get the most out of the taxes you paid.

A helpful article about taking the Standard Deduction