Standard deduction

The individual taxpayer can either itemize deductions or take the standard deduction. The standard deduction is a tax deduction that reduces the amount of income on which you are taxed. You cannot take the standard deduction if you claim itemized deductions. Your standard deduction consists of the basic standard deduction amount based on your filing status and additional standard deduction for different circumstances that a taxpayer might be under.

Limitations exist on the amount of the standard deduction of a taxpayer who is another taxpayer’s dependent.