Other Issues In Standard Deduction
Zero Deductions
The following individual taxpayers have a standard deduction of zero:
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Taxpayers who are married, and both file as married separate, and either spouse itemizes deductions. However, where one qualifies to file as head of household, that spouse is not bound by this rule but the one filing married separate is;
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Nonresident aliens (including dual status aliens, Rev Rul 74-239, 1974-1 CB 372); and
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Taxpayers filing short-year returns because of a change in accounting period. (IRC 63(c)(6))
Election to Change
Taxpayers, who file returns using the standard deduction, may later change their minds and itemize their deductions and vice versa. Any change must be consistent with the rules for married separate taxpayers. Amended returns to claim a refund must be filed within the statute of limitations period.
AMT and Itemizing
For AMT purposes, the standard deduction is not allowed. In such cases it may be appropriate to force itemized deductions, which are partially allowed for AMT. The standard deduction can’t be claimed for regular tax purposes and itemized deductions for AMT; consistency is required. See chapter 8.00 for details of this tax saving strategy.
Nonresident
If you are a nonresident of the U.S., you cannot claim the standard deduction. However, students and business apprentices from India may be eligible to claim the standard deduction under Article 21 of the U.S.A.-India Income Tax Treaty. Refer to Publication 519, U.S. Tax Guide for Aliens and to Revenue Procedure 93-20 for more information.