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Show Tax deduction ruling cuts bill for many The new minimum standard deduction provision put into the 1964 tax law will cut bills for millions of people who earn less than $10,000 a year. Roland V. Wise, Director of Internal Revenue's Salt Lake City District, said this new provision will save 13 million taxpayers an estimated $320 million in Federal income taxes this year. The new minimum standard deduction amounts to $200 for a single person and for a married mar-ried couple filing jointly plus $100 for each allowable exemption exemp-tion up to a ceiling of $1,000 For a married person filing a separate return, the deduction amounts to $100 plus $100 for each allowable exemption up to a ceiling of $500. When husband and wife file separately, they both must claim the same type of standard stand-ard deduction. One cannot use the minimum standard deduction deduc-tion if the other claims the regular reg-ular 10 standard deduction. If deductions are not itemized, item-ized, this new minimum standard stand-ard deduction is used when it is larger than the regular 10 standard deduction. |