Standard Deduction
You can take this deduction, which reduces the amount of income which you are taxed on, as an alternative to itemizing all of your expenses. The standard deduction is variable depending on your filing status. In 2015, the standard deduction is:
- Single or married filing separately: $6,300
- Married filing jointly: $12,600
- Head of household: $9,250
You don’t need to prove any part of this deduction, unlike those who itemize. The IRS reports that about two thirds of all taxpayers opt for the standard deduction.
Standard Deduction for Dependent Status
Children (or other relative) who are claimed by a parent or other taxpayer as a dependent on their tax return cannot claim a personal exemption when they file their own tax return. However, the dependent is entitled to a standard deduction of whichever amount is greater: $1,050 or your earned income plus $350. However, this deduction is limited to the amount of the basic standard deduction for your filing status.
Standard Mileage Rate
If you use your car for business, charitable organizations, job-related moving, or medical transportation, you may be eligible to deduct the expenses incurred during this type of use. The standard mileage rate assesses a fixed figure to each mile you drive, so you aren’t required to keep an itemized list of the actual operating costs. For 2015, the standard mileage rate is as follows:
- For business use: 57.5 cents per mile
- For Medical and Job-related: 23 cents per mile
- For charitable use: 14 cents per mile
You can still deduct the cost of parking and tolls.
