Individual taxpayers in the United States are faced with a choice when preparing their tax returns. Starting with their AGI (adjusted gross income), they can itemize their deductions (from a list of allowable items) and subtract the total from their AGI (and any applicable personal exemptions) to arrive at their taxable income. Alternately, they can elect to subtract the standard deduction for their filing status (and any applicable personal exemptions) to arrive at their taxable income.

The choice between the standard deduction and itemizing involves a number of factors:

• A comparison between the available standard deduction and allowable itemized deductions - the larger number is generally advantageous
• Whether or not the taxpayer has or is willing to maintain the records required to substantiate the itemized deductions
• If the total itemized deductions and the standard deduction are very close in value, whether the taxpayer would prefer to take the standard deduction to reduce the risk of change upon IRS audit. (The standard deduction amount cannot be changed upon audit unless the taxpayer's filing status changes).
• Whether the taxpayer is otherwise eligible to file a shorter tax form (like the 1040EZ or 1040A) and would prefer not to prepare (or pay to have prepared) the more complicated 1040 form and the associated Schedule A for itemized deductions.