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Ch. 2 Tax Return Overview:
Ch. 2 Tax Return Overview:
Types of Deductions
Types of Deductions
Itemized Deductions v.s. Standard Deductions:
Standard: Everyone has the right to take the standard deduction on their tax return. Standard deductions are fixed amounts. Look at the Filling Status section to see the standard deduction each filling status can take.
Itemized: Itemized deductions are eligible deductions an individual is able to make on their tax return. Some examples of itemized deductions include charity donations, property taxes, health expenses, and mortgage payments.
Individuals could only pick ONE deduction, they can not use both. It is recommended to use the itemized deduction when the dollar amount is greater than the standard deduction.
If you are older than 65 and/or blind you get and additional standard deduction for each. *These amounts change, so be sure to check the IRS page for updated numbers. These are the standard deductions for the 2024 tax return!*
Single: $1,950 for each additional
Married: $1,550 for each additional
Last Updated: 2/13/2025
Filling Status for the 2024 Tax Return
Filling Status for the 2024 Tax Return
For 2024 Return! Deductions may change on an annual basis. To see changes in standard deduction go to the IRS page.
Single: Standard Deduction: $14,600
Married as of 12/31:
Joint(MFJ): Standard Deduction: $29,200
Separate(MFS): Standard Deduction: $14,600. You will pay more in taxes.
Head of Household: Standard Deduction: $21,900. Need to pay more than 50% of home costs, principle residence for dependent has to be more than half a year, and you cannot be married (exception-abandoned spouse)
Surviving Spouse (Qualifying Widow(er)): $29,200. Can file MFJ in year of death, 2 years after can file as survivor if dependent child is living in home during those 2 years
Last Updated: 2/13/2025
Check this video out to get a better understanding of filling statues!
Check this video out to get a better understanding of filling statues!
Dependency
Dependency
There are two categories for dependents: Qualifying Child or Qualifying Relative. Both categories must be resident of the U.S., Mexico, or Canada and they cannot file a joint return.
To be considered a qualifying child, one must meet this criteria:
Relationship Test: Must be the same generation level or below the parent.
Abode Test: Must live with taxpayer for more than 50% of the year. If child is living somewhere else for college, it is okay as long as they meet the age test.
Age Test: Must be under 19 or under 24 and be a full time student at least for 1 semester in the year.
Support Test: Child must not be self-supporting (>50%). Support counts as housing, food, clothing, etc.
To be considered a qualifying relative, one must meet this criteria:
Relationship Test: Must be related as ancestors or descents. Cousins and foster parents DO NOT COUNT! A stranger does qualify for the relationship test.
Abode Test: The qualifying relative must live with the provider for the ENTIRE YEAR, but if the qualifying relative is your parent they do not need to live with you.
Support Test: Same as qualifying child.
Gross Income Test: Dependent's taxable gross income must be less than personal exemption amount of $5,050.
Be mindful that these amounts can change every year! Last updated: 2/13/2025
MEMES TO MAKE TAX RETURN FUN 😉
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