The Federal Income Tax Standard Deductions is an option that can eliminate the need for you to itemize your tax return. But, taking the standard deductions when filing your taxes may not always be the best way for you to file.

2011 Standard Deduction amounts:

The standard deduction amount will be affected depending on how you file, your age, any disabilities, and whether or not you can be claimed by another taxpayer. The dependant factors are- if you are either single or married but filing separately your standard deduction will be approximately $5,350.00, if you are married and you file your returns jointly or you have a dependent then your standard deduction will increase to $10,700.00. If you claim head of household your standard deduction will then be $7,850.00. Your standard deduction may also be decreased if your annual income exceeds a certain amount.

Time to Take the Standard Deduction

Its not necessary that taking the standard deduction be always beneficial for you. If you find out that you have a bigger deduction with itemizing, then you should itemize your return. If you find that you have more deductions by taking the standard deduction rather than itemizing, then you should go with the standard deduction. You may not be able to take the standard deduction if you file separately and your spouse itemizes or if you are a non resident of the United States.