What is the difference between standard and itemized deductions?

Standard deductions and itemized deductions are two different ways to lower your taxable income and decrease your tax liability. Standard deductions are the same amount for everyone who files a tax return. The amount of the deduction is based on filing status and is set by the IRS. In California, for the 2019 tax year, the standard deduction for single and married filing separately is $12,200. For married filing jointly and head of household, the standard deduction is $24,400. Itemized deductions allow taxpayers to reduce their taxable income by subtracting certain qualified expenses. These expenses fall into categories such as medical bills, state and local taxes, real estate taxes, mortgage interest, and charitable contributions. To receive the itemized deduction, taxpayers must keep track of each category by itemizing their expenses and providing the required forms and documents. The amount of the deduction is based on the total amount of money spent in each itemized category for the tax year. Overall, the standard and itemized deductions both allow taxpayers to decrease the amount of taxable income, which in turn decreases the amount of taxes due to the state. The difference between the two is that the standard deduction is a set amount while the itemized deduction is based on the taxpayers allowable expenses.

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What is the difference between standard and itemized deductions?

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