Welcome to Alpha to Omega Tax Services, LLC - now located in West Columbia, SC
All taxpayers are entitled to a "standard deduction" from their income. The amount of the standard deduction is determined by the individuals filing status. For Tax Year 2010 (returns filed in 2011) the standard deductions are:
- $5,800 for Single or Married Filing Separately.
- $8,500 for Head of Household
- $11,600 for Married Filing Jointly or Qualified Widow / Widower
(If the Bush tax cuts were not extended in December 2010, the standard deduction for married people would have been less than for singles - this is commonly referred to as “the marriage penalty”. Keep your eyes open for this to come up again in 2 years)
These standard amounts are based on the fact that everyone has certain expenses that they must pay for housing and other costs of living. The standard deduction may be claimed without having any records for these expenses.
If your expenses are more than the standard deduction and you have accurate records you may use your expenses to subtract more from your taxable income. These deductions are listed on 1040 schedule A. Generally most tax preparation services charge an additional fee for preparing a Schedule A and the you will need to keep your records for a minimum of 3 years in case the IRS wants to verify the amounts claimed on your return.
Click here for a form that will help you identify and organize your deductions.