- Personal Finance
2011 Standard Tax Deduction
Standard Deduction 2011
The IRS sets various income tax numbers each year. Some of those numbers are manually adjusted based upon rules or formulas, but there are many that are automatically adjusted each year based on the rise or fall in inflation. The 2011 standard deduction for federal income taxes is one of the numbers that is indexed for inflation. Each year, the IRS announces late in the year how big the standard deduction will be for the coming year. If inflation rises, the amount of the standard deduction increases, if inflation is negative, then the deduction amount actually declines. The number used when filing 2011 taxes was set before the end of 2010.
Taxpayers, of course, may choose to either itemize their tax deductions or take the standard deduction. For those people on the borderline of whether it is better to itemize or use the standard income tax deduction, the annual changes can make a difference in how a person's taxes are filed. For most people, the amount of interest paid annually on their home mortgage determines whether it is better to itemize or take the standard deduction.
Claiming Standard Deduction
Standard Deduction 2011 Amount
For taxpayers who are married filing jointly, the 2011 standard deduction is $11,600, which is an increase of $200 from the standard deduction in 2010.
For taxpayers who filing as single, the standard deduction 2011 amount is $5,800. That is up $100 from the $5,700 amount for federal income taxes filed in 2010.
The amounts of all deductions and tax credits, as well as the income tax brackets are announced via press release by the IRS each year and can also be found on the IRS website. Information regarding the standard deduction is explained in Tax Topic 551 - Standard Deduction.
The 2011 deduction is used for taxes due by April 15, 2012. For taxes in 2012, which are due by April 15, 2013, you need the 2012 standard deduction amount.