Optional Standard Deduction for Individuals

Many of us will be filing our income tax returns for 2008 on Wednesday, April 15, 2009.

An individual entitled to claim optional standard deduction (and who opts to not avail of itemized deductions against gross income) should note that a 10% optional standard deduction applies for the period January to June 2008 while a 40% optional standard deduction applies for the period July to December 2008.   The Bureau of Internal Revenue limited the optional standard deduction to 10% for the first half of 2008 since Republic Act No. 9504, which increased the optional standard deduction from 10% to 40%, became effective on July 6, 2008 only.  

For more details, check Revenue Regulations No. 16-2008 dated November 16, 2008 and consult your tax advisors.

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