standard deduction

standard deduction definition - finance
The amount of money that individuals or married couples who do not itemize their deductions are allowed to deduct from their income for purposes of calculating income taxes. For 2002, the standard deduction for those under 65 were: single, $4,700; head of household, $6,900; married filing jointly or a qualified widower, $7,850; and married filing separately, $3,925.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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