What is the Standard Deduction for tax year 2012?
The standard deduction is a fixed amount that reduces your taxable income. Think of it as tax-free income that you get to keep before the remainder of your income is taxed.
Your age and filing status, along with several other factors, determines your standard deduction amount.
The chart below shows how standard deduction amounts are calculated for tax year 2012. (TurboTax calculates this for you and automatically gives you the deduction, standard or itemized, that saves you the most money on your taxes.)
Note: If somebody else can claim you (or your spouse, if filing jointly) as a dependent, your standard deduction amount might be reduced. If you're in this situation you might want to read IRS Publication 501, which covers this topic in detail