Amounts

• The standard deduction for single taxpayers was $5,800 for 2011. It increases to $8,500 for people filing as head of household, and $11,600 for married taxpayers filing joint tax returns. Additional amounts are available for taxpayers who are blind or over 65 years of age; the deduction increases by $1,150 for being over 65 and another $1,150 if you are blind. If both spouses are blind and over age 65, they can take an additional $4,600 in standard deductions. Single taxpayers may take deductions of $1,450 for being blind, and an additional $1,450 for being over 65.
  
  

Use of Standard Deduction

• You may choose to use the standard deduction if it results in a greater tax benefit than itemizing your deductions. Itemizing is listing your eligible deductions separately and deducting the total. Eligible itemized deductions include unreimbursed medical expenses that exceed 7.5 percent of the taxpayer's income, as well as state and local taxes. One of the most significant deductions for many taxpayers is mortgage interest. Itemized deductions do not automatically increase because a taxpayer claims dependents.
  
  

Dependents Standard Deduction

• If you claim someone as a dependent on your tax return, the amount of the standard deduction that they can take on their own return is reduced. The dependent may take a standard deduction of either the greater of $950 or the amount of his earned income plus $300. A dependent can itemize his deductions if it results in a greater tax benefit. In addition, a dependent cannot claim a personal exemption on his own tax return.
  
  

Other Tax Benefits with Dependents

• You are allowed to claim a deduction from your income tax called an exemption for each dependent that you claim on your taxes. As of publication, you may claim $3,700 as an exemption for each eligible dependent, in addition to an exemption of the same amount for yourself and your spouse if you file a joint return. A tax credit of up to $1,000 is also available if your dependent is under age 17 at the end of the year. This credit is phased out for taxpayers with higher incomes.