 schedule. We have some of the items on the left-hand side, although this is not the full schedule page. This has given us a layout of the standard deduction, the hurdle that we would have to clear, dependent largely on the filing status. Single filers having a standard deduction, $13,850, married filing joint, doubling to $27,700, head of household in the middle $20,800, and if over an age or blind, you would then have the added standard deduction depending on if one or two of those items are checked off for single versus one through four for two people if married and head of household qualified widow and so on and so forth. All right, so now we're going to be continuing on with the state taxes. You will recall that in a federal income tax system, the general idea of an income tax is that we should be able to deduct those things that we have to consume in order to generate revenue. So we're taxed not on gross income, but net income, a concept most clearly seen with the schedule C business deductions where we have in essence an income statement income minus the expenses we have to spend in order to generate the income, the net income than being the thing we apply the tax to the schedule A has a bunch of things that kind of deviate from that standard rule where we have personal items that we get a deduction from for whatever reason in the past. Now this often comes up with complexities related to them. We're now looking at the state taxes. Remembering state taxes and local taxes are different than the federal income taxes. Clearly we can't deduct federal income taxes typically, at least like the income tax in order to then calculate the income tax because we would result in a circle reference. But what about the state taxes? Normally the answer would be in a pure kind of income tax system. No, you wouldn't get to deduct them because they're personal unless they were spent for the business. You bought something business related and had to pay state taxes. Then you would think it would be like a business expense. But the IRS for whatever reason said we're going to deduct the state taxes. And so now we have the capacity to deduct certain state and local taxes. We talked about in the past, some of those being the state tax like an income tax that the state might set up to take care of the things they are responsible for such as local police firefighting and so on and so forth versus the federal government that should be mainly focused on protecting us military. And then and then on the local side, they could pay for that with an income tax or possibly like a sales tax, whatever they wanted to do. We talked about those options. What about like real estate? That's another big one where we have basically a property tax type of situation on the main piece of property for most people that being a home. And this is probably one of the big factors that really helped the itemized deductions of the state taxes to stay in place on the schedule A. And I would think it's because of the lobbyist. My skeptical mind would say, well, it's because all of the people that are in the housing industry wants subsidies for housing. Therefore, mortgage interest, a personal expense and the real estate taxes related to the purchase of the home become very beneficial for those those interests. Right. So now we have the taxes on the home. Can we deduct the taxes on the home? Remembering that usually it's going to be a more well off individuals that have the ability to itemize because they're going to have more itemized deductions. And the main thing that pushes people over from taking the standard to itemized deductions is the ownership of the home primarily because of the loan or mortgage related to it and the interest expense on that mortgage, which could be deductible, but also significant to the ownership of the home are real estate taxes, which are often quite high in many areas. However, remember the real estate taxes have been limited a lot in a few years ago. So if you're in a high cost of living area, it's quite common that you could get capped on the deductibility of real estate taxes as they're included to like total state taxes. So that's something to keep in mind. Also just keep in mind that you probably don't want to buy a house just so that you can itemize your deductions unless you've you've really calculated it out because there could be a big gap between the standard deductions you're taking and being able to itemize. And so we might touch in on that when we get to the software example problem, but just realize if someone says, hey, you get to deduct all 6,000 of the taxes, plus you get to deduct the real the loan interest on the mortgage interest. And that's true. And you say, well, that's like 20,000 of a deduction. But if you were married before, you still might not be clearing it might not be enough to clear the itemized deductions or barely clear the itemized deductions. So the actual amount of benefit that you're getting could be substantially less than the itemized deductions that you're claiming on the Schedule A. So we'll see that more in the example problems tip. So if you are a homeowner who receives assistance under a state housing finance agency hardest hit fund program or an emergency homeowners loan program, you could see publication 530 for the amount you can include online 5b.