Investor Glossary-standard deductionInvestor Glossary-standard deductionInvestor Glossary-standard deductionInvestor Glossary-standard deductionInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Standard Deduction

The HTML to link to this page
 

A standard deduction is an amount of income that can be deducted from a taxpayer's adjusted gross income (AGI). The amount of standard deduction is not subject to taxes so applying the standard deduction will reduce a taxpayer's tax liability. Taxpayers have to chose between using standard deduction or itemized deduction, they cannot use both in a same tax year. Taxpayers like to use standard deduction for several reasons. First, by using a standard deduction and not an itemized deduction, a taxpayer does not need to keep records of all tax deductible expenses. Second, for most taxpayers, the amount of standard deduction is often greater than the deduction they would get if they itemized expenses that are tax deductible. The amount of standard deduction will depend on the filing status of the taxpayer, whether the taxpayer can be claimed as a dependent on another taxpayer's return, the age of the taxpayer, or whether the taxpayer is disabled. The amount of standard deduction changes every tax year and is inflation adjusted.



Rate this Standard Deduction definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, annual return, 144a, dividends payable, diluted share, 1031 exchange, APR, retained earnings, open position, 401a, 1035 exchange, irrevocable trust, labor relations, stock split, covered put, deferred revenue, liquidity ratio, LIBOR, margin rate, current ratio, per diem, implied volatility, required rate of return, minority interest, phantom income, limit order, deferred tax, cancelled check, inflation, risk management, EBITDA, class C shares, Key Rate Duration, option premium, stock market close, real GDP, ex-dividend date, balance sheet, Zero Cost Collar, quality assurance, in escrow, debt service coverage, FTSE, ex-dividend, wholly-owned subsidiary, reverse mortgage, FICO score, VIX, command economy


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use