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When:
January 01, 2001

Who it Affects:
All taxpayers
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2001 Tax Law Changes
Standard deduction goes up

Every year, the Internal Revenue Service adjusts the standard deduction to account for inflation.

The standard deduction is the government's way of saying you should not be taxed on everything.

The size of the deduction varies by filing status. All taxpayers are eligible to use it. But remember: If a taxpayer's itemized deductions exceed the amount of his standard deduction, he should go with the itemized amount to reduce his tax bill.

This year, the deduction is:

 2001 Standard Deductions
Filling statusAmount
Married filling jointly or qualifying widow(er)$7,600
Heads of Household$6,650
Singles$4,550
Married filling separately$3,800
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