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A fixed dollar amount reduction of the income that is taxed, which varies according to the taxpayer's filing status. Taxpayers choose this when it exceeds itemized deductions or they do not prefer to itemize.

Tax deductions that individual taxpayers may report for certain expenses, including medical expenses, property taxes, state and local taxes, and charitable contributions. Chosen when total itemized deductions are greater than the standard deduction.

Taxpayers often choose the standard deduction when they do not have enough deductible expenses to itemize, or when they seek a simpler filing process.

Itemizing deductions can lead to a lower tax bill when the total of allowable expenses exceeds the standard deduction. It is typically more time-consuming and requires detailed record-keeping.

The standard deduction amount is adjusted annually for inflation and can vary based on age, disability status, and dependency.

Certain itemized deductions are subject to limits; for example, there's a floor for medical expenses (7.5% of AGI), and state and local tax deductions are capped at $10,000.$

Filing status (e.g., single, head of household, married filing jointly) impacts the amount of the standard deduction and can influence the decision to itemize.

To qualify for itemized deductions, the taxpayer must have spent money on deductible expenses that are recognized by the IRS and must be able to prove those expenses with receipts or records.

Recent tax reforms have increased the standard deduction significantly, which has made itemizing less beneficial for many taxpayers.