By Tom Herman
Q: What will the standard deduction be for this year for a
married couple, both over 65?
P.B., Port St. Lucie, Fla.
A:Assuming you and your spouse will be filing your federal
income-tax return jointly, the standard deduction for you and your
spouse will be $14,800 for the 2014 tax year, says Mark Luscombe,
principal federal tax analyst for Wolters Kluwer, CCH. This refers
to federal income-tax returns to be filed next year for 2014.
Here is how that is calculated: The basic standard deduction is
$12,400 for married couples filing jointly for the 2014 tax year.
(For singles, it's $6,200.) There are additional amounts for those
who are 65 or older, or blind. The IRS website has more
details.
Since you said you and your spouse each are over 65, you would
add another $1,200 apiece, for a total of $14,800.
The standard deduction is "a dollar amount that reduces your
taxable income," the IRS says in a publication. Most taxpayers have
a choice of claiming the standard deduction or "itemizing"
deductions on Schedule A. Nearly two out of three federal
income-tax returns each year take the standard deduction.
Before you choose the standard deduction, check to see whether
you would be better off itemizing.
Some people automatically choose the standard deduction since
that's what they have been doing for years, or because it seems
easier than itemizing
***
If you rent out your home, is the income taxable?
In most cases, you have to include "all amounts you receive as
rent" in your gross income, the IRS says in a publication. But if
you rent out your personal residence for 14 days or less during the
year, the rental income is tax-free.
With 2015 almost here, that's worth thinking about if you're
looking for a way to earn some tax-free rental income for 2014.
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