Standard deduction
The standard deduction is basically a fixed amount that helps lower the income you get taxed on. It changes depending on your filing status, age, and whether you’re blind. You have the choice to take the standard deduction or itemize your expenses if those add up to more than the standard deduction. And keep in mind, these amounts can change every year!
Standard deduction amounts
| 2023 | 2024 |
Single/Married Filing Separately | $13,850 | $14,600 |
Head of Household | $20,800 | $21,900 |
Married Filing Jointly | $27,700 | $29,200 |
Qualifying for the standard deduction
Most taxpayers can take the standard deduction, but there are some exceptions. You wouldn’t be eligible if you’re:
An estate, trust, or partnership.
A married person filing separately whose spouse is itemizing deductions.
Someone filing a return for less than 12 months due to a change in your accounting period.
A nonresident alien or dual-status alien, unless you meet certain conditions.
If none of that applies to you, chances are you can take the standard deduction!
Also, if you’re 65 or older or blind, you get an extra deduction:
| 2023 | 2024 |
Single/Head of Household, Married Filing Separately | $1,850 | $1,950 |
Married Filing Jointly (per taxpayer) | $1,500 | $1,55 |
Being claimed as a dependent
If you can be claimed as a dependent, your standard deduction will be the greater of $1,150 or your earned income plus $400. Just remember, the total can’t exceed the basic standard deduction for your filing status.
Itemized deductions
Itemized deductions are specific expenses that can also reduce your taxable income. Some common ones include:
Out-of-pocket medical and dental expenses
State and local income taxes
Mortgage interest
Charitable contributions
Gambling losses
When to use itemized deductions
Generally, you'll want to itemize if your total itemized deductions exceed your standard deduction or if you can’t take the standard deduction at all. It really comes down to comparing those numbers to see what works best for you each year.
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
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