- The standard deduction reduces the amount of your income that is federally taxed.
- The amount of the standard deduction changes annually to adjust for inflation.
- You can choose to take the standard deduction or itemize your deductions, whichever is greater.
Tax deductions allow you to reduce the amount of income you're taxed on when you file your federal income tax return with the Internal Revenue Service. The standard deduction is one that's available to all taxpayers.
The exact amount of the IRS standard deduction changes each year to account for inflation.
What is the standard deduction?
Definition and purpose
The standard deduction allows you to reduce your income by a set dollar amount, depending on your tax filing status. If you file as a single person, you'll get a smaller deduction than a person filing as head of household or a married couple filing jointly.
How the standard deduction works
When you file your federal tax return, you can choose to use either the standard deduction or itemize your deductions, whichever amount is highest.
"All taxpayers automatically get the standard deduction," says Armine Alajian, a CPA and founder of the Alajian Group in Los Angeles. "Some people who have certain expenses that fall under the itemized deduction category, like excessive health expenses, mortgage interest, property tax, and charitable deductions, can choose to itemize their deductions."
If you pick the standard deduction, you'll claim it on Form 1040. For itemized deductions, you'll need Schedule A to list all of the eligible expenses you're claiming.
Here's a simple example of how the standard deduction looks in action: If you have a gross income of $80,000 and file your return as a single person, are under 65, and are not blind, you would be eligible for a standard deduction of $14,600 on your 2024 tax return. This would mean you'd only be taxed on $65,400 of income, assuming there are no other above-the-line deductions you qualify for.
Changes in the standard deduction for 2024
The amount of the standard deduction is adjusted every year to account for inflation. It has climbed steadily since it was introduced in 1944.
In 2024, it increased again, jumping about 5.4% from 2023 levels.
|
Filing status |
Standard deduction for 2023 (taxes you file in 2024) |
Standard deduction for 2024 (taxes you file in 2025) |
|
Single |
$13,850 |
$14,600 |
|
Married, filing jointly |
$27,700 |
$29,200 |
|
Married, filing separately |
$13,850 |
$14,600 |
|
Head of household |
$20,800 |
$21,900 |
Additional standard deduction for seniors and blind individuals
If you are over age 65 or blind, you're eligible for an additional standard deduction of $1,500 to $1,950, depending on your filing status. If you are both elderly and blind, this amount is doubled.
Eligibility for the standard deduction
Most taxpayers are eligible for the standard deduction. If you opt to itemize your deductions, however, you won't also be able to claim the standard deduction.
In addition to this, you may be ineligible for the standard deduction if:
- You and your spouse file your returns separately, and your spouse itemizes their deductions
- You file as an estate, trust, common trust fund, or partnership
- You file a return for less than 12 months due to a change in your account period
- You are a nonresident alien or dual-status alien during the tax year
There are exceptions to the nonresident alien rule, so make sure to check with the IRS if this applies to you.
If your income is less than the standard deduction, then you do not have to file a federal tax return. But, you may still want to in order to claim a refund for taxes you paid throughout the year or claim refundable tax credits, such as the earned income tax credit.
Itemized deduction vs. standard deduction
The standard deduction will reduce your income by a fixed amount that varies depending on your filing status. Itemized deductions also reduce your income but require you to list eligible expenses and file an additional tax form.
Common itemized deductions include the following:
- Medical and dental expenses in excess of 7.5% of AGI
- Mortgage interest on loans of up to $750,000
- Property taxes and state and local taxes, capped at $10,000
- Charitable donations
- Casualty and theft losses
If you're not sure whether to take the standard deduction or itemize deductions, talk to a tax professional. They can help you run the numbers and make the best choice for your finances.
FAQs on the standard deduction
What is the standard deduction amount for 2024?
The standard deduction amount for 2024 is $14,600 for single taxpayers and married couples filing separately, $21,900 for head of household filers, and $29,200 for married couples filing jointly.
Who qualifies for the standard deduction?
Most taxpayers qualify for the standard deduction. However, you may not qualify if: you and your spouse file your returns separately, and your spouse itemizes their deductions; you file as an estate, trust, common trust fund, or partnership; you file a return for less than 12 months due to a change in your account period; or you are a nonresident alien or dual-status alien during the tax year.
Should I itemize deductions or take the standard deduction?
In order to itemize deductions instead of taking the standard deduction, your eligible expenses must exceed your standard deduction. Eligible expenses include mortgage interest, real estate taxes, medical expenses, and gifts to charity. It is difficult for most taxpayers to meet this threshold.
How does the standard deduction impact my taxable income?
The standard deduction reduces your income by a preset amount, leading to a lower taxable income.
Can I claim the standard deduction if I'm married and filing separately?
Yes, you can claim the standard deduction if you're married and filing separately. Married couples who file separately can claim the same amount as single filers, or $14,600 in 2024. Married couples who file jointly can claim double that amount, or $29,200.
