What is the difference between standard and itemized deductions?

Standard deductions are fixed amounts that taxpayers can deduct from their taxable income during the filing of their taxes. A standard deduction is available to those who do not itemize their deductions, which means the taxpayer does not list out or document all the possible deductions that are available to them. In Pennsylvania, the standard deduction for 2019 was $5,839 for individuals and $11,678 for married couples filing jointly. Itemized deductions, on the other hand, are deductions that need to be itemized on a taxpayer’s tax return. These deductions are based on a variety of factors, such as qualifying medical expenses, qualifying home mortgage interest expenses, qualifying charitable donations, and other allowable itemized deductions. The total amount of the itemized deductions can be greater than the standard deduction, resulting in a lower taxable income for the taxpayer and an overall lower tax liability. In Pennsylvania, itemized deductions are generally allowed to taxpayers that itemize their deductions on their federal tax forms. Certain deductions may be limited or not allowed at the state level when filing Pennsylvania taxes. For example, the Pennsylvania state income tax does not allow a deduction for state income tax paid. Therefore, taxpayers should research and understand the differences between standard and itemized deductions when filing their taxes.

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What is the difference between standard and itemized deductions?

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