Your standard deduction depends on your filing status. Moreover, the standard deduction amount is indexed -- that is, adjusted upward each year to provide relief from inflation -- as measured by increases in the Consumer Price Index.

            For tax year 2000, the normal standard deduction is $7,350 for married couples filing jointly, or $3,675 if they file separately. The law requires married persons filing separately to handle their deductions the same way; if one spouse itemizes, so must the other.

            A frequently overlooked part of this is that the normal standard deduction is also $7,350 for someone who qualifies as a "surviving spouse" -- a widow or widower who has a dependent child and is entitled to use joint-return rates for two years after the death of a spouse in 1998 or 1999.

            The normal deduction amounts are $4,400 for an individual with the filing status of single, and $6,450 for a head of household.

Julian Block, a former IRS agent and tax attorney, is the author of "Julian Block's Tax Avoidance Secrets" ($29.95 p&h included, 560 pgs. Mention you are a PhotoStockNotes subscriber and receive the book for $19.95. Julian Block, 3 Washington Sq, Larchmont NY 10538-2032). For Julian's tax saving and tax planning reports, go to http://www.photosourcefolio.com/TaxReports.htm . Julian can be reached at julianblock@yahoo.com.