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Standard deduction
Taxpayers receive the benefit of a minimum amount of itemized deductions called the standard deduction. The standard deduction is a fixed amount that is used to simplify the computation of the tax liability. It is also designed to eliminate lower-income individuals from the tax rolls. All taxpayers subtract from adjusted gross income the larger of their itemized deductions or the standard deduction. The standard deduction is based on the filing status of the taxpayer and is made up of the basic standard deduction plus any additional standard deduction. The standard deduction amounts are adjusted annually for inflation.
An additional standard deduction is allowed aged or blind taxpayers. For 2016, the additional standard deduction is $1,250 for an aged or blind individual who is married or is a surviving spouse; the additional standard deduction is $1,550 for a single individual or for a head of household who is aged or blind. Taxpayers receive an additional standard deduction for being both aged and blind. Thus, a married couple, both aged and blind, receives and additional standard deduction of $5,000 ($1,250 x 4).