The deadline for filing an income tax return was on April 18. There are two options on filing your income tax returns; it is by using either a standard or itemized deductions. The IRS has compiled six steps on choosing the best method that can give you lower tax.

Itemizing your deductions will depend on certain expenses you have made last year. Money you paid for expenses in medical care, any mortgage interest, taxes, donations in charity, casualty or theft losses, and other miscellaneous deductions can also reduce your income taxes. In case the amount you spent is more than to your standard deductions, you may itemize your deductions.

1.    Standard Deductions – The amounts of deduction will be based on what filing status you used and subjected to the adjustment inflation every year. For 2010, the list are:

•    For Single $5,700
•    For married that will file jointly $11,400
•    For the head of household $8,400
•    For married that will file separately $5,700
•    For qualifying widow(er) $11,400

2.    Different standard deductions of some taxpayers – The amount of standard deductions will depends on your chosen filing status, its either you’re a 65 or older, or maybe blind and any exemption for you that can be claimed by other taxpayer. In case, any of these applies to you, use the back Form of 1040EZ, 1040A, or 1040 to fill-up the Standard Deduction Worksheet. This standard deduction will also depends on the amount if ever you are planning to claim any additional standard deductions from loss to a disaster, state or local sales, and any excess taxes you have paid for purchasing new vehicle before 2010. In able to claim these deductions, a taxpayer must use Schedule L Form called Standard Deductions for Certain Filers.

3.    Limited Itemized Deductions – If you had adjusted gross income, your itemized deductions was not longer limited.

4.    Married but filing separately – For married couple who wants to file separately and the spouse itemizes the deductions, the other spouse are not allowed to claim standard deductions and hence, must itemize the deductions to claim another allowable deductions.

5.    Taxpayers that are not allowed to use standard deductions – They are non-residents aliens, those aliens who have dual status, and also individuals who file their returns less than twelve months because of changes in their accounting period.

6.    Forms to be use – If you want to use the standard deductions, Form 1040, 1040A and 1040EZ are available. And if you’re available to a higher standard deduction for new vehicle taxes or any disaster loss, attach the Schedule L Form.