John M. Hoffman & Associates CPAs

Frequently Asked Questions

Important Tax Numbers ($'s)

• Standard Deduction

Tax Year	2009	2010
Married Filing Jointly	$11,400	$11,400
Single	$5,700	$5,700
Head of Household	$8,350	$8,400
Dependent **	$950	$950
Married Filing Separately	$5,700	$5,700
Additional Amount for Age (65) or Blindness	$1,100	$1,100

The standard deduction is the amount that the IRS allows taxpayers who do not itemize their deductions, to claim instead. Claiming the standard deduction is not a bad thing. Taxpayers over 65 years old, or blind, get an additional $1,100 standard deduction (each when married) or $1,400 when single.

** Dependents get a standard deduction equal to the lesser of the single amount, or their earned income but not below the above amount.

Advantages of claiming the standard deduction:

• No itemized deductions subject to audit.

• When itemizing, only the amounts above the standard deduction give rise to a tax benefit.

• Please note the new opportunity for a real estate tax deduction for non-itemizers.