1. TAX-AIDE Standard Deduction Pub 4012 –Tab F Pub 4491 –Part 5 – Lesson 20

2. TAX-AIDE Deductions ● Subtractions from a taxpayer’s adjusted gross income (AGI) ● Reduces amount of income taxed ● Most taxpayers have a choice Standard deduction Itemizing deductions ● Use type of deduction that results in lower tax NTTC Training – TY2015 2

3. TAX-AIDE 3 Standard Deduction ● Fixed reduction of AGI based on: Filing status Age (65 or older) Blindness Dependency ● Standard amounts change each year NTTC Training – TY2015 3

4. TAX-AIDE Intake/Interview ● If filing as MFS – is spouse itemizing? NTTC Training – TY2015 4

5. TAX-AIDE Exception ● Married Filing Separately If either itemizes – both must itemize Does not matter who files first ● Note: if considered unmarried for Head of Household, may claim standard deduction NTTC Training – TY2015 5

6. TAX-AIDE Blindness ● Totally blind taxpayer OR ● Certified statement from eye doctor that Taxpayer cannot see better than 20/200 in the better eye with glasses or contact lenses -OR- Field of vision is not more than 20 degrees NTTC Training – TY2015 6

7. TAX-AIDE Standard Deduction – Special Rule ● Dependent of another Standard deduction is $350 plus earned income Minimum: $1,050 Maximum: the regular standard deduction amount Plus $1,550 for 65 or older or blind ($1,250 if married) NTTC Training – TY2015 7 Pub 4012 Pg F-2

8. TAX-AIDE Standard Deduction – Special Rule ● Dual status alien or a nonresident alien May not be eligible for standard deduction See Pub 519  International certification required NTTC Training – TY2015 8

9. TAX-AIDE Standard Deduction ● Automatically calculated based on entries on Main Information Sheet ● TaxWise Form 1040 – pg 2 NTTC Training – TY2015 9

10. TAX-AIDE Quality Review ● Verify blind (and disability if relevant to your state) entries on Intake Sheet ● Verify type of deduction if MFS ● Verify amount of deduction if Taxpayer is the dependent of another NTTC Training – TY2015 10

11. TAX-AIDE Standard Deduction NTTC Training – TY2015 11 Questions? Comments?