Return to list
When:
January 01, 2003
Who it Affects:
All taxpayers
|
2003 Tax Law Changes
Standard deduction goes up
Every year, the Internal Revenue Service adjusts the standard deduction to account for inflation. This is the basic deduction all taxpayers get. But don't just take the standard deduction. Total up all your deductions every year. If the total of your itemized deductions exceeds the standard deduction, then, by all means, itemize. It will save you money. If your deductions don't exceed the standard deduction, then don't itemize.
For 2003, the deduction is:
| 2003 Standard Deductions | | Filling status | Amount | | Married filling jointly or qualifying widow(er) | $9,500 | | Heads of Household | $7,000 | | Singles | $4,750 | | Married filling separately | $4,750 |
|
Additional standard deductions
If you're 65 or blind: An additional $950 standard deduction may be claimed by a married taxpayer ($1,150 by a single taxpayer) who is at least 65 years old or blind.
If you're 65 AND blind: A further $1,900 ($2,300 by a single taxpayer) standard deduction can be claimed if the taxpayer is at least 65 years old and blind.
2004 standard deduction changes
In 2004, the standard deduction rises to:
| 2004 Standard Deductions | | Filling status | Amount | | Married filling jointly or qualifying widow(er) | $9,700 | | Heads of Household | $7,150 | | Singles | $4,850 | | Married filling separately | $4,850 |
|
If you're 65 or blind: An additional $950 standard deduction may be claimed by a married taxpayer ($1,200 by a single taxpayer) who is at least 65 years old or blind.
If you're 65 AND blind: A further $1,900 ($2,400 by a single taxpayer) standard deduction can be claimed if the taxpayer is at least 65 years old and blind.
|
