What is the difference between standard and itemized deductions?

Standard deductions are fixed amounts that taxpayers can deduct from their taxable income without needing to itemize. All taxpayers have the option to take the standard deduction. In Tennessee, on a federal income tax return, the standard deduction is $12,400 for a single filer or married filing separately, $24,800 for a married couple filing jointly, and $18,650 for a head of household. Itemized deductions, on the other hand, are deductions that taxpayers record on specific lines on their tax forms. It is available to taxpayers who are able to itemize their deductions instead of taking the standard deduction. To itemize deductions taxpayers must complete the appropriate line items. Examples of itemized deductions include medical and dental expenses, charitable donations, state and local taxes, home mortgage interest, investment interest, casualty and theft loss, and unreimbursed employee expenses. In summary, the primary difference between standard and itemized deductions is that itemized deductions involve filling out specific line items on a form and listing details about each deduction. Standard deductions is a set amount based on filing status. Taxpayers have the choice to take either the standard deduction or itemize their deductions, however, taxpayers should run the numbers to see which deduction would be most beneficial for them.

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What is the difference between standard and itemized deductions?

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