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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 most taxpayers.
Though the exact amount of the IRS standard deduction changes each year, it has offered at least a $12,000 to $24,000 reduction in taxable income per tax filer since 2018, when the Tax Cuts and Jobs Act went into effect.
The standard deduction allows you to reduce your taxable 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.
"There are special cases where the standard deduction can be higher for certain taxpayers," says Armine Alajian, a certified public accountant and founder of the Alajian Group in Los Angeles. "If you are over 65 or blind, you can get an additional amount added to your standard deduction."
Here's a simple example of how the standard deduction looks in action: If you have 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 $12,950 on your 2022 tax return. This would mean you'd only be taxed on $67,050 of income, assuming there are no other above-the-line deductions.
The amount of the standard deduction is adjusted every year to account for inflation. It has climbed steadily since the standard deduction was introduced in 1970.
In 2023, it increases again, jumping about 7% from its 2022 levels.
Filing status | Standard deduction for 2022 (taxes you file in 2023) | Standard deduction for 2023 (taxes you file in 2024) |
Single | $12,950 | $13,850 |
Married, filing jointly | $25,900 | $27,700 |
Married, filing separately | $12,950 | $13,850 |
Head of household | $19,400 | $20,800 |
If you are over age 65 or blind, you're eligible for an additional standard deduction of $1,500 to $1,850, depending on your filing status. If you are both elderly and blind, this amount is doubled.
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," Alajian says. "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.
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:
There are exceptions to the nonresident alien rule, so make sure to check with the IRS if this applies to you.
The standard deduction for tax year 2022 — that's the tax return you file in spring 2023 — is $12,950 for single filers and married couples filing separately, $19,400 for head of household filers, and $25,900 for married couples filing jointly.
The standard deduction for tax year 2023 is $13,850 for single taxpayers and married couples filing separately, $20,800 for head of household filers, and $27,700 for married couples filing jointly.
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.
You should take the standard deduction if it is larger than your total itemized deductions would be. If your itemized deductions total is higher, you should claim those deductions instead. Talk to a tax professional if you're not sure which strategy is best for your situation.
