Standard Deduction 2011 Amount
Good news, the standard deduction amount for 2011 has increased. The standard deduction is for taxpayers who do not itemize on their 1040 tax form. Your filing status will determine how much higher your standard deduction will be. The standard deduction is usually increased due to inflation adjustments which helps all of us out a little bit.
Larger Standard Deduction for Net Disaster Loss or New Motor Vehicle Purchase
The standard deduction may be increased for you because you purchased a new motor vehicle, because you've had a net disaster loss, or other reasons also qualify. As you can imagine there are all sorts of dates and regulations to determine if you qualify for a larger standard deduction due to net disaster loss or for a new motor vehicle purchase.
Standard Deduction Worksheet
You can determine if you qualify for a larger standard deduction if you use the standard deduction worksheet. If you want to know if your new motor vehicle purchase qualifies for the larger standard deduction you will have to work your way through Schedule L which must be attached to your 1040 income tax return. The same applies for a net disaster loss.
Standard Deduction or Itemizing Tax Deductions on Schedule A of the 1040 Tax Return Form
Choices can be easy or difficult and it’s really pretty easy to determine if you will take the standard deduction or itemize your tax deductions. If you use online tax preparation services, such as TurboTax Online you will be prompted to take one or the other based on what route will be most advantageous for you. If your itemized deductions add up to less than the standard deduction, then it would be much wiser and easier to take the standard deduction. If all of your itemized tax deductions add up to more than your allowed standard deduction, then it would be wiser to go with itemizing.
Larger Standard Deduction Under Certain Circumstances
If you happen to take the standard deduction you may qualify for an even larger standard deduction. If you are 65 years of age or older, if you are blind, if you experienced a net disaster loss, or if you paid certain types of taxes on new motor vehicle purchase. As you know with the IRS and taxes, many stipulations, rules and regulations apply to determine if you qualify for a larger standard deduction.
Standard Deduction Information and Help
If you would like more information about taking the standard deduction you might want to try online tax software. Tax preparation companies, such as TurboTax Online can provide tons of information and help when it comes to making the decision of choosing between the standard deduction or itemizing tax deductions. This decision may be the difference of thousands of dollars which will be in or out of your pockets. Give TurboTax Online a try today and protect yourself from losing out on a lot of money!
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