How Much Is the Standard Deduction?
When it comes to filing your taxes, you have choices. You can either claim the standard deduction, or you can itemize your deductions in the hopes that it will result in a higher total tax break for you.
A tax deduction allows you to exempt a portion of your income from taxes. It's different from a tax credit, which is a dollar-for-dollar reduction of your tax liability. But tax deductions can be extremely lucrative, especially if you're in a higher tax bracket. Knowing what each year's standard deduction entails will make it easier for you to decide whether itemizing makes sense.
Image source: Getty Images.
Source Fool.com
