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Pros And Cons Of Standard Deductions

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Standard deductions are characterized by the United States tax laws as the dollar amounts subtracted by non-itemizers from own income as per their tax filing statuses. With respect to federal taxes, the standard deductions are claimable by citizens of the U.S. along with aliens resident in the country. The aliens and citizens may be household heads, married persons, or single individuals. Generally, the deductions increase in each succeeding year. Very limited cadres of nonresident aliens within the US enjoy the deductions. Such cadres include F1 visa-holding Indian students in the U.S. Blind persons and those past their 65th birthday are eligible for extra standard deductions amounts. Notably, the deductions are not the same as individual, …show more content…

Consequently, taxpayers opt for the deductions that lessen the tax amounts owed as much as possible. To simplify tax computations, the law allows for standard deductions that the majority of taxpayers can opt for if they are higher than own itemized deductions (Crandall-Hollick, 2013). As well, the law allows for such deductions to lessen the challenges related to the auditing of given itemized deductions, which are executed by the Internal Revenue Service (IRS). Standard deductions are deemed to be gross income adjustments. At times, the U.S Congress equates poverty levels to the deductions. Even then, the equating of the two has been rather inconsistent in the past (Bakija & Steuerle, 1991). This paper examines the standard deduction changes that have defined the U.S. federal income tax between 2011 and …show more content…

By and large, every research study’s purpose assists the persons undertaking it appraise its significance in the light of individual values. Ideally, the statement spelling out the purpose should include not only the study's eventual purpose but also its immediate purpose. As noted earlier, there are various widespread contestations arising from differing appreciations of the basics of standard deductions. As a general rule, each of the deductions is seen as rising each succeeding year. Even then, in some cases, the deductions reduce in succeeding years. Consequently, the present study’s purpose is to use credible, actual data in determining whether for a fact, federal income tax-related standard deductions rise every twelve months

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