Qualifying

The standard deduction is available to almost all tax-return filers, even if they had no "deductible" expenses during the year, such as mortgage interest or charitable donations.

Function

The purpose of the standard deduction is to ensure all taxpayers do not pay federal income tax on a portion of their income. In effect, because of the standard deduction, most taxpayers don't pay federal income tax until their income exceeds a certain level.

Types

The basic standard deduction for a single filer was $5,700 in 2009. For a married couple filing jointly, the standard deduction was $11,400. The standard deduction may increase if you are blind, over the age of 65 or if you paid real estate taxes during the year.

Features

The standard deduction is set every year. Typically, the standard deduction increases each year to account for inflation.

Misconceptions

Many tax filers believe that if they claim the standard deduction they can't claim any other deductions. However, you may be entitled to claim adjustments to income, such as retirement account contributions, as well as tax credits including the housing tax credit or the child-care tax credit.

Source:

IRS Guide to Standard Deduction