The Difference Between Standard and Itemized Tax Deductions

As a pilot or flight attendant, you may have heard others talk about using a standard deduction or using itemized deductions, and wondered what they meant. Well, the answer is relatively simple.

The standard deduction is a predetermined amount the IRS sets each year. The figure is calculated to give you a certain set amount based on what the IRS determines to be reasonable for the current year. The deduction encompasses many cost of living expenses and other expenses that are common or reasonable to everyone. There are three general categories for the standard deduction:

1. Single or married filing separately
2. Married filing jointly or qualifying widow
3. Head of household.
   

Depending on which category you file in will determine the amount of your standard deduction.

The itemized deduction is the deduction that usually applies to pilots and flight attendants. By itemizing, you or your tax preparer lists out your expenses that you accrued for the year individually. You can deduct your job expenses, home mortgage interest, medical and dental expenses, gifts to charities, and so on. By itemizing, you can usually exceed the standard deduction by a large amount. Because of this, it is usually more beneficial for pilots and flight attendants to itemize their deductions.