Most taxpayers know that deductions allow you to take out certain expenses from taxable income. This lowers the tax burden. There are two types of deductions: standard deductions and itemized deductions. You can only choose one and cannot itemize deductions and use the standard deduction in the same tax year.
The standard deduction is about to change for the tax year 2023. So, knowing if it’s more advantageous to take the standard deduction rather than itemizing is important. But what and how much is the standard deduction in tax years 2022 and 2023?
How Standard Deduction Works
The standard deduction ensures that not all your income is handed over to Uncle Sam. Taxpayers can either claim the standard deduction or itemize their expenses. Both ways lower your tax liability….