Tax Preparer Guide to 1040 Chapter 19 Standard and Itemized Deductions Flashcards
1
Q
Standard Deduction
A
Is a fixed dollar amount that can be deducted from adjusted gross income (AGI) to arrive at taxable income.
2
Q
Itemized Deduction
A
Are allowed for various personal expenses, including medical costs, taxes, interest, charitable contributions, personal casualty and theft losses, and various miscellaneous expenses. Certain thresholds and limitations apply to some itemized deductions. Taxpayers must keep adequate records to support deductions claimed.
