The Internal Revenue Service has announced it will increase some deductions to adjust for inflation.
In 2007, standard deductions will rise 400 to $10,700. That is for married couples filing a joint return.
Deductions for singles and married couples filing separately will go up 200 to $5,000.
And, for those filing as head of households, deductions will go up 300 to $7,800.
The changes will affect 2007 returns, which most taxpayers will file in 2008.
