Those who are 65 or older and are unmarried, and aren’t a surviving spouse, may be eligible for a standard deduction of $1,750 (2022 taxes) and $1,850 (2023 taxes). Those who are 65-plus years old or blind and are married or a surviving spouse may be eligible for an additional standard deduction of $1,400 (for 2022 taxes) and $1,500 ( for 2023 taxes). Additional standard deductionsĭifferent standard deductions on your federal income tax depend on age and vision too. Filing Statusĭeductions differ depending on marital status, how you decide to file (if married or as head of household) or if you’re a qualifying surviving spouse. The table below breaks down deductions by filing status and tax year ( 20), according to the IRS.
Standard deductions vary depending on your filing status, meaning married couples, single filers and qualifying widows each have their own deduction for income tax purposes. The decision to proceed with standard versus itemized deductions should be made after evaluating your situation with a financial professional.
Many filers choose the standard deduction, but others may opt for an itemized deduction and send in a Schedule A IRS form alongside their Form 1040 or 1040-SR. This figure is wholly based on your own spending. Conversely, for itemized deductions, you have to list out what you spend on your tax returns. It's important to understand the difference between a standard deduction and an itemized deduction, so you can make the best choice for your own financial situation.Ī standard deduction is the set amount determined by the IRS for qualifying taxpayers in the given tax year, based on your filing status. Bear in mind that standard deductions apply to the given tax year, not the filing year. Your tax bill is determined by your tax rate, tax credits and other factors that will affect how much you owe. This can translate into a lower income tax percentage on your return, potentially reducing the amount you pay when you calculate taxable income. You may drop into a lower tax bracket, depending on how much the standard deduction reduces your adjusted gross income (AGI). The standard tax deduction provides taxpayers a specific dollar amount of income they can subtract from their earned income on their federal tax return.īy using the standard deductions, a taxpayer could fall into a lower tax bracket and thus have a lower tax liability at the end of the year. The standard deductions for 20 are different, and your eligibility to take the standard deduction depends on factors unique to your finances. The Internal Revenue Service (IRS) permits taxpayers to deduct this amount from their taxable income in lieu of having to itemize deductions.Īlthough the standard deduction seeks to simplify some of the complexities of your tax returns, a host of factors should be considered before choosing between deductions.
Standard deduction figures are determined by the IRS based on the taxpayer's filing status and the tax year.The standard deduction is a set amount taxpayers can deduct from earned income on their taxes.
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