Part II: Taxable Income and Deductions Before calculating taxes, you will sometimes be able to apply deductions, which reduce the amount of your total income that will be taxed. I The deductions that will apply in this activity: Personal Deductions 1) Take the standard deduction of $12,950 for single individuals in 2022. 90% of filers use this option. 2) Itemize deductions if the total deductions will be more than the standard deduction. This would include items like: a) Interest on the first $750,000 of a mortgage b) State and local taxes up to $10,000 c) Charitable contributions Business Deductions 3) If you receive a 1099 for work as an independent contractor, you can deduct business expenses on top of your personal deductions