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He has no itemized deductions. Joe finds his standard deduction by using Table 8. He enters his earned income, $3,800, on line 1. He adds lines 1 and 2 and enters $4,150 on line 3. On line 5, he enters $4,150, the larger of lines 3 and 4. Because Joe is married filing a separate return, he enters $6,200 on line 6. On line 7a he enters $4,150 as his standard deduction be­ cause it is smaller than $6,200, the amount on line 6. Example 3. Amy, who is single, can be claimed as a dependent on her parents' 2014 tax return. She is 18 years old and blind. She has interest income of $1,300 and wages of $2,900. She has no itemized deductions. Amy uses Table 8 to find her standard deduction. She enters her wages of $2,900 on line 1. She adds lines 1 and 2 and enters $3,250 on line 3. On line 5, she enters $3,250, the larger of lines 3 and 4. Because she is single, Amy enters $6,200 on line 6. She enters $3,250 on line 7a. This is the smaller of the amounts on lines 5 and 6. Because she checked one box in the top part of the worksheet, she enters $1,550 on line 7b. She then adds the amounts on lines 7a and 7b and enters her standard deduction of $4,800 on line 7c. Example 4. Ed is 18 years old and single. His parents can claim an exemption for him on their 2014 tax return. He has wages of $7,000, interest income of $500, and a business loss of $3,000. He has no itemized deductions. Ed uses Table 8 to figure his standard deduction. He enters $4,000 ($7,000 ­ $3,000) on line 1. He adds lines 1 and 2 and enters $4,350 on line 3. On line 5, he enters $4,350, the larger of lines 3 and 4. Because he is single, Ed enters $6,200 on line 6. On line 7a he enters $4,350 as his standard deduction because it is smaller than $6,200, the amount on line 6. Who Should Itemize You should itemize deductions if your total de­ ductions are more than the standard deduction amount. Also, you should itemize if you do not qualify for the standard deduction, as discussed earlier under Persons not eligible for the stand- ard deduction. You should first figure your itemized deduc­ tions and compare that amount to your stand­ ard deduction to make sure you are using the method that gives you the greater benefit. You may be subject to a limit on some of your itemized deductions if your ad- justed gross income is more than $254,200 ($279,650 if head of household, $305,050 if married filing jointly or qualifying widow(er), $152,525 if married filing sepa- rately). See the instructions for Schedule A (Form 1040) for more information on figuring the correct amount of your itemized deductions. When to itemize. You may benefit from itemizing your deductions on Schedule A (Form 1040) if you: 1. Do not qualify for the standard deduction, or the amount you can claim is limited, 2. Had large uninsured medical and dental expenses during the year, 3. Paid interest and taxes on your home, 4. Had large unreimbursed employee busi­ ness expenses or other miscellaneous de­ ductions, 5. Had large uninsured casualty or theft los­ ses, 6. Made large contributions to qualified chari­ ties, or CAUTION ! 7. Have total itemized deductions that are more than the standard deduction to which you otherwise are entitled. If you decide to itemize your deductions, complete Schedule A and attach it to your Form 1040. Enter the amount from Schedule A, line 29, on Form 1040, line 40. Electing to itemize for state tax or other purposes. Even if your itemized deductions are less than your standard deduction, you can elect to itemize deductions on your federal re­ turn rather than take the standard deduction. You may want to do this if, for example, the tax benefit of itemizing your deductions on your state tax return is greater than the tax benefit you lose on your federal return by not taking the standard deduction. To make this election, you must check the box on line 30 of Schedule A. Changing your mind. If you do not itemize your deductions and later find that you should have itemized — or if you itemize your deduc­ tions and later find you should not have — you can change your return by filing Form 1040X. Married persons who filed separate re- turns. You can change methods of taking de­ ductions only if you and your spouse both make the same changes. Both of you must file a con­ sent to assessment for any additional tax either one may owe as a result of the change. You and your spouse can use the method that gives you the lower total tax, even though one of you may pay more tax than you would have paid by using the other method. You both must use the same method of claiming deduc­ tions. If one itemizes deductions, the other should itemize because he or she will not qual­ ify for the standard deduction. See Persons not eligible for the standard deduction, earlier. Publication 501 (2014) Page 25