Definition: Standard Deduction - Examples & Advice | Bolder Money

1098 Mortgage Interest Statement 1098 Mortgage Interest Statement

Alternative Minimum Tax (AMT)Alternative Minimum Tax (AMT)

Capital Gains Tax Capital Gains Tax

Capital Loss Capital Loss

Child Tax Credit Child Tax Credit

Child and Dependent Care Credit Child and Dependent Care Credit

Dependent Dependent

Earned Income Tax Credit (EITC)Earned Income Tax Credit (EITC)

Estate Tax Estate Tax

Form 1040 Form 1040

Income Tax Income Tax

Itemized Deduction Itemized Deduction

Standard Deduction Standard Deduction

Tax Bracket Tax Bracket

Tax Credit Tax Credit

Tax Deduction Tax Deduction

Tax Filing Tax Filing

Tax Filing Deadline Tax Filing Deadline

Tax Filing Extension Tax Filing Extension

Tax Liability Tax Liability

Tax Loss Harvesting Tax Loss Harvesting

Tax Refund Tax Refund

Tax Refund Anticipation Loan Tax Refund Anticipation Loan

Tax Return Tax Return

Tax Shelter Tax Shelter

Tax Status Tax Status

Tax Withholding Tax Withholding

W 9 Form W 9 Form

Withholding Allowance Withholding Allowance

Definition

A fixed amount that reduces your taxable income, available as an alternative to itemizing deductions.

What to consider

Know the fixed amount available to reduce your taxable income.
Compare it with your potential itemized deductions each year.
Stay updated on changes in tax laws that affect the deduction.

Real world scenarios

When filing her taxes, Mia opted for the standard deduction, which simplified her return by reducing her taxable income without itemizing individual expenses.

Related terms

Reviewing: Taxes (13 of 30) ▼

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