* Filing status Standard deduction

Single $12,950
Married filing jointly $25,900
Head of household $19,400
Married filing separately $12,950
Widow $24,400

Taxpayers who are 65 or older or blind are entitled to an additional standard deduction of $1,750. Taxpayers
who are both 65 or older and blind are entitled to an additional standard deduction of $3,500.
Taxpayers who can be claimed as a dependent on another taxpayer's return are not allowed to claim a
standard deduction.
Taxpayers should choose the method that results in the lower tax liability. In most cases, the standard
deduction will result in a lower tax liability than itemizing deductions.
Here are some of the reasons why taxpayers might choose to itemize deductions instead of taking the
standard deduction:
 They have large medical expenses.
 They have large charitable contributions.
 They have real estate taxes.
 They have state and local income taxes.
 They have mortgage interest.
If taxpayers are unsure whether they should itemize deductions or take the standard deduction, they should
consult with a tax professional.
A widow or widower who meets certain requirements can use the qualifying widow(er) filing status for the
two years following the year of their spouse's death. This status allows the taxpayer to use the same standard
deduction and tax rates as a married couple filing jointly.
To qualify for the qualifying widow(er) filing status, the taxpayer must meet all of the following requirements:
 The taxpayer must be the surviving spouse of a deceased spouse.
 The taxpayer must not have remarried before the end of the tax year.
 The taxpayer must have a dependent child (or children) for the entire tax year.
If a taxpayer meets all of the requirements for the qualifying widow(er) filing status, they can use the following
standard deduction amounts for 2023:
 If the taxpayer is under age 65, the standard deduction is $24,400.
 If the taxpayer is age 65 or older, the standard deduction is $25,700.
The qualifying widow(er) filing status can be a valuable tax break for widows and widowers. It can help them
lower their tax liability and save money.
Here are some of the benefits of using the qualifying widow(er) filing status:
 Higher standard deduction: The standard deduction for qualifying widows and widowers is the same as the
standard deduction for married couples filing jointly. This is higher than the standard deduction for single
taxpayers or heads of household.
 Lower tax rates: Qualifying widows and widowers pay tax rates that are the same as the tax rates for
married couples filing jointly. This can save them money on their taxes.
 Ability to claim dependent children: Qualifying widows and widowers can claim their dependent children as
dependents on their tax return. This can give them a tax break for the cost of raising their children.
If you are a widow or widower, you should consider using the qualifying widow(er) filing status for your taxes.
It can help you lower your tax liability and save money.
Adjusted gross income (AGI) is an individual's total gross income minus certain deductions. It is used to
calculate taxable income, which is AGI minus allowances for personal exemptions and itemized deductions. For
most individual tax purposes, AGI is more relevant than gross income.
The following are some of the most common deductions that can be used to calculate AGI:
 Contributions to retirement accounts, such as 401(k)s and IRAs
 Student loan interest
 Alimony payments
 Medical expenses
 State and local taxes
 Casualty and theft losses
 Unreimbursed employee expenses
Some of these deductions are only available to certain taxpayers, such as those who are 65 or older or who are
blind. Taxpayers should consult with a tax professional to determine which deductions they are eligible for.
AGI is an important number for taxpayers because it is used to determine their eligibility for certain tax credits
and deductions. For example, taxpayers with low AGI may be eligible for the Earned Income Tax Credit (EITC),
which is a refundable tax credit that can help them get a larger refund or reduce their tax liability.
AGI is also used to determine the amount of Social Security and Medicare taxes that taxpayers owe. These
taxes are calculated as a percentage of AGI, so taxpayers with higher AGI will pay more in these taxes.
Overall, AGI is an important number for taxpayers to understand. It is used to calculate taxable income,
determine eligibility for certain tax credits and deductions, and calculate Social Security and Medicare taxes.
Some of the types of itemized deductions for individual taxpayers, with the ermissible limits:
 Medical expenses: Medical expenses are only deductible if they exceed 7.5% of your adjusted gross income
(AGI). This means that if your AGI is $50,000, you can only deduct medical expenses that are more than $3,750.
 State and local taxes: You can deduct state and local income taxes, real estate taxes, and personal property
taxes. The combined deduction for state and local taxes is limited to $10,000 for taxpayers filing jointly and
$5,000 for taxpayers filing separately.
 Mortgage interest: You can deduct mortgage interest on your first and second homes, up to a limit of $750,000
for mortgages originated after December 15, 2017. For mortgages originated before December 15, 2017, the
limit is $1 million.
 Charitable contributions: You can deduct charitable contributions that you make to qualified organizations.
There is no limit on the amount of charitable contributions that you can deduct, but you must itemize your
deductions in order to claim them.
 Casualty and theft losses: You can deduct casualty and theft losses if they are more than 10% of your AGI. To
claim a casualty or theft loss, you must itemize your deductions and you must have documentation to support
your loss.
 Gambling losses: You can deduct gambling losses, but only to the extent of your gambling winnings. For
example, if you win $100 gambling and lose $50, you can deduct $50.
 Investment interest expense: You can deduct investment interest expense, but only to the extent of your
investment income. For example, if you have $10,000 in investment income and $5,000 in investment interest
expense, you can deduct $5,000.
It is important to note that these are just some of the types of itemized deductions that are available to
individual taxpayers. There are other deductions that may be available, depending on your individual
circumstances. If you are unsure whether you qualify for a particular deduction, you should consult with a tax
professional.
The qualified business income (QBI) deduction is a tax deduction for individuals and businesses that meet
certain requirements. The deduction was created by the Tax Cuts and Jobs Act of 2017 and allows taxpayers to
deduct up to 20% of their QBI from their taxable income.
To be eligible for the QBI deduction, taxpayers must meet the following requirements:
 They must be a sole proprietor, partner in a partnership, shareholder in an S corporation, or beneficiary of a
trust or estate that owns a business.
 The business must be a qualified trade or business. This means that the business must be actively engaged
in the production of goods or the performance of services and must be conducted in the United States.
 The taxpayer's taxable income must be less than $315,000 for single filers, $400,000 for married couples
filing jointly, or $157,500 for heads of households.
The amount of the QBI deduction is limited to the lesser of:
 20% of the taxpayer's QBI
 20% of the taxpayer's taxable income minus net capital gains
For example, if a taxpayer has $100,000 of QBI and $150,000 of taxable income, their QBI deduction would be
$20,000 (20% of $100,000). However, if the taxpayer also had $20,000 of net capital gains, their QBI deduction
would be $16,000 (20% of $80,000).
The QBI deduction is a valuable tax break for many small businesses and self-employed individuals. However, it
is important to note that the deduction is subject to a number of limitations, so taxpayers should carefully
review the requirements to determine if they are eligible.
Here are some of the items that are included in QBI:
 Net income from the business
 Gains from the sale of business property
 Deductible expenses related to the business
 Depreciation and amortization of business assets
 Self-employment taxes
 Health insurance premiums paid by self-employed individuals
Here are some of the items that are not included in QBI:
 Capital gains and losses
 Dividends
 Interest income
 Rental income
 Wages paid to employees
 Contributions to retirement plans
 Non-deductible expenses
The QBI deduction is a complex tax provision, and taxpayers should consult with a tax professional to
determine if they are eligible and to calculate the amount of their deduction.

Gross Income Schedule

list of gross income schedules for US individual taxpayers, with a brief summary of each:

 Schedule C: This schedule is used to report income from a sole proprietorship or a partnership. It
includes income from business activities, such as sales, services, and rents.
 Schedule E: This schedule is used to report income from rental real estate, royalties, partnerships, S
corporations, trusts, and estates. It includes income from rents, royalties, and other forms of income
from these sources.
 Schedule F: This schedule is used to report income from farming. It includes income from sales of
crops and livestock, as well as other forms of income from farming.
 Schedule 1 (Form 1040): This schedule is used to report taxable refunds, credits, or offsets of state
and local income taxes. It also includes other types of income, such as alimony received and taxable
Social Security benefits.
 Schedule 2 (Form 1040): This schedule is used to report taxable interest and ordinary dividends. It
also includes other types of income, such as taxable IRA distributions and capital gains distributions.

In addition to these schedules, there are also a number of other schedules that may be used to report gross
income from specific sources. For example, Schedule 3 (Form 1040) is used to report taxable refunds, credits,
or offsets of foreign taxes, and Schedule 4 (Form 1040) is used to report additional taxes, such as the
alternative minimum tax.
The specific schedule that is used to report gross income will depend on the type of income that is being
reported. For example, income from a sole proprietorship or a partnership would be reported on Schedule C,
while income from rental real estate would be reported on Schedule E.

It is important to note that not all income is taxable. For example, interest income from municipal bonds is not
taxable. In addition, some income may be subject to special rules, such as the qualified business income (QBI)
deduction.