Also called: additional standard deduction, itemized deductions
A fixed amount subtracted from AGI before tax is calculated. Taxpayers 65 or older get an additional amount. You take the standard deduction or your itemized deductions, whichever is larger.
Itemized deductions include state and local taxes up to a legal cap, medical expenses above 7.5% of AGI, and charitable gifts. The standard and additional amounts are indexed to inflation each year.
RetIQ compares the two every projected year when Itemized Deduction Comparison is enabled.