Summary

You should be able to identify those who can take the standard deduction and how the deduction is affected by their filing status, age, blindness, and status as a dependent. All of this will make it easier for you to help taxpayers understand how their deduction is computed and its impact on their tax.

You should also understand that the tax computation is based on taxable income. The tax may be further reduced by tax credits to be covered in an upcoming lesson.

The next lesson is Itemized Deductions, which is part of the Intermediate certification path. Taxpayers who itemize deductions must be referred to a volunteer certified at the Intermediate level.