Standard Deduction

If you decide not to itemize your deductions on your tax return, you are eligible for a standard deduction that is determined by your filing status, age, blindness (or lack thereof) and status as a claimed dependent. Leading tax software provider TurboTax estimates that two-thirds of all taxpayers opt for a standard deduction over itemized deductions. For 2008, the standard deduction will be $10,900 on joint returns, $5,450 for singles and $8,000 for heads of household. Children who are claimed as dependents on their parents' returns may increase the deduction.