Courtesy of Julian Block

Many of you who are about to file returns for 2009 want advice on whether to claim the standard deduction or to itemize outlays like mortgage interest and charitable contributions. Itemizing pays off only when total itemized deductions surpass the standard deduction.

The normal standard deduction amounts are $11,400 for joint filers, $8,350 for heads of household, and $5,700 for married persons filing separately and singles. Couples who file separate returns must handle their deductions the same way; if one spouse itemizes, so must the other.

The deduction of $11,400 for joint filers also is available to a “surviving spouse”—a widow or widower who has a dependent child living with him or her and is entitled to use joint-return rates for two years after the death of a spouse in 2007 or 2008.

The deductions for individuals who have reached age 65 by the end of 2009 increase by $1,100 for a married person and $1,400 for someone whose filing status is single or head of household. Persons considered to be blind are entitled to those additional amounts or double those amounts if they are both 65 and blind.

So the standard deduction rises from $5,700 to $7,100 for a single person who is age 65 or older. It goes from $5,700 to $8,500 for a single person who is at least 65 and blind. On a joint return, depending on whether one or both spouses are at least 65, it increases from $11,400 to $12,500 or $13,600 (with additional $1,100 amounts available for blindness).

The standard deduction decreases for individuals (children and elderly parents, mostly) who can be claimed as dependents on the returns of other persons. For 2009, the standard deduction can be as little as $950.

There are some add-ons to the standard deduction. But they come with plenty of stipulations.

Homeowners who do not itemize can claim an additional standard deduction for state and local real estate taxes. The extra deduction is capped at $1,000 for joint filers or $500 for other returns (or actual taxes paid, if that is less).

Another change helps nonitemizers whose homes and other properties were damaged or destroyed in places declared to be federal disaster areas eligible for assistance. They can boost their standard deduction by the amount of uninsured losses attributable to natural disasters like hurricanes and landslides. Disaster losses are deductible without being subject to the usual requirement that casualty and theft write-offs are allowable only to the extent they exceed 10% of AGI (adjusted gross income).

Another add-on is for individuals who buy new motor vehicles between February 17, 2009, and December 31, 2009. Buyers boost their standard deduction by what they pay for state and local sales taxes and excise taxes on up to $49,500 of the purchase price of each qualifying vehicle. Vehicles passing muster include new cars, sport-utility vehicles, light trucks, motorcycles (must weigh under 8,500 pounds), and mobile homes, but not used-vehicle purchases or leases. 

As with lots of other incentives, this add-on is unavailable to high-income buyers. It starts to vanish when modified AGI (same as AGI for most buyers) exceeds specified amounts—between $125,000 and $135,000 for individual filers and $250,000 and $260,000 for joint filers.