IRS provides for deductions from your income tax return to reduce the amount of your taxable income. There are two ways you can take deductions. You can use standard deduction or you can itemize deductions. Standard deduction is a dollar amount that reduces the amount of income on which you are taxed. The amount varies depending on you income, age and filing status and changes each year. You are allowed an additional deduction, if you are 65 or older at the end of the tax year.
You are also allowed an additional deduction for blindness if you are blind on the last day of the tax year. Be sure to check on box 23a in Form 1040 to claim additional standard deduction if you or your spouse were age 65 or older or blind at the end of the year. Certain tax payers are not eligible for to the standard deduction. In that case you can itemize your deductions. Remember, You should itemized deductions if your allowable itemized deductions are greater than your standard deduction
You will benefit by itemizing deductions if you cannot use the standard deduction, you had large uninsured medical and dental expense, you paid interest or taxes on your home, you had large unreimbursed employee business expenses, had large uninsured casualty or theft losses, or made large charitable contributions. But remember your itemized deductions may be limited and your total itemized deductions may even be phased if your adjusted gross income exceed the threshold limits. You can Refer to the Form 1040, Schedule A Instructions (PDF) for the limitation amounts.