Most people do not keep every receipt for a deductible expense. The IRS recognizes this and that most people have deductible expenses they would not otherwise be able to claim. Accordingly, the IRS allows for each individual to claim a predetermined amount of money in lieu of itemizing deductible expenses from the year. In 2016, taxpayers are permitted to claim the following amounts on line 40. This amount ultimately reduces adjusted gross income before the tax rate is applied:
Circular 230 Notice: Pursuant to U.S. Treasury Department Regulations, all tax advice herein is not intended or written to be used, and may not be used, for the purposes of avoiding tax-related penalties under the Internal Revenue Code or promoting, marketing or recommending advice on any tax-related matters addressed herein.
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