13.1 Claiming the Standard Deduction

On your 2012 Form 1040, 1040A, or 1040EZ, you are allowed a standard deduction, which is an “automatic” deduction you may claim regardless of your actual expenses. The standard deduction reduces adjusted gross income (AGI).

If you file Form 1040, choose the standard deduction if it exceeds the itemized deductions that could be claimed on Schedule A. Claim the standard deduction only if it exceeds your allowable itemized deductions for charitable donations, certain local taxes, interest, allowable casualty losses, miscellaneous expenses, and medical expenses. If your deductions exceed your standard deduction, you elect to itemize by claiming the deductions on Schedule A of Form 1040. However, if you are married filing separately and your spouse itemizes deductions, you also must itemize, even if the standard deduction exceeds your itemized deductions (13.3).

Basic standard deduction.

The basic standard deduction is allowed if you are under age 65 and not blind. The amount is adjusted each year to reflect inflation. For 2012, the basic standard deduction is:

A married person filing separately must itemize deductions and may not claim any standard deduction if his or her spouse itemizes on a separate return (13.2).

Additional standard deduction if age 65 or older or blind.

For taxpayers age 65 or over, or taxpayers of any age who are blind, the basic standard deduction is increased by an additional amount (13.4).

Dependents.

Individuals who may be claimed as dependents by other taxpayers are generally limited to a $950 standard deduction for 2012, unless they have earned income (13.5).

Dual-status alien.

You are generally not entitled to any standard deduction if for part of the year you are a nonresident and part of the year a resident alien. However, a standard deduction may be claimed on a joint return if your spouse is a U.S. citizen or resident and you elect to be taxed on your worldwide income (1.5).