Itemizing deductions can be a real pain. As you consider your options this year, looking at the standard deduction for 2013 can save you a lot of time and actually produce bigger tax savings. But how can you figure out if the standard deduction is right for you?
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, goes through the standard deduction for 2013, noting that single filers get $6,100 this year, married joint filers get $12,200, and those who file as head of household get $8,950. Dan also points out that those who are 65 or older or are blind get additional standard deductions of $1,500 for single filers or $1,200 for married filers in 2013. In deciding whether to take the standard deduction, many families find that their itemized deductions are actually less than the standard deduction amount, making the standard deduction a no-brainer. Yet even those whose itemized deductions exceed their standard deduction for 2013 by a small amount can sometimes choose the standard deduction to avoid recordkeeping and other issues. As long as you don't cheat yourself out of a huge tax benefit, taking the standard deduction makes taxes a whole lot simpler than itemizing.
Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.