The IRS isn’t cruel. It doesn’t want to tax every last cent you earn. In fact, it offers a standard deduction — a gift! — to all taxpayers based on their filing status.
For the 2014 tax year, the standard deduction for a single filer under the age of 65 can automatically deduct $6,200 from their taxable income, and a married couple filing jointly can deduct $12,400 ($6,200 married filing separately).
But, depending on your finances, you may be able to lower your tax burden even further if you itemize deductions.
Written into the tax code are allowances for all kinds of deductible expenses.