1 Bracket widths, personal exemptions, the standard deduction, and earned income credit are now indexed against inflation.

2 Taxpayers who do not take the standard deduction may select itemized deductions. Original receipts for a) tog) deductions below must be attached.

3 Deductions are either standard or itemized A standard deduction reduces taxable income by a fixed amount.

4 Certain other expenses also may be deducted from taxable income, or one may elect to use the "standard deduction.

5 But today more than 70 % of taxpayers already use the simple one-page standard deduction.

6 Eliminated the "marriage penalty" by expanding the 15% tax bracket and by increasing the standard deduction for joint filers.

7 You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead.

8 As a result, experts do not believe that the standard deduction increases.

9 You should also understand when it makes sense to move away from the standard deduction and start itemizing your return.

10 But taxpayers at low income levels don't tend to itemize taking the standard deduction instead.