# Standard Deduction in Taxes and How It's Calculated

![Standard Deduction](https://www.investopedia.com/thmb/rYCAfbrjCKeNe4o6LS7ptfMgRLA=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/standarddeduction-resized-8f2ac3f88bca4ef099d637cb80f79e29.jpg)

*— Investopedia / Ellen Lindner*

## What Is Standard Deduction?

The Internal Revenue Service (IRS) offers a significant tax break through the standard deduction, which is a fixed income amount not subject to tax. In 2024, the deduction increases to $14,600 for singles and $29,200 for joint filers, reflecting adjustments for inflation. This tax provision can substantially reduce your taxable income, helping you save on your annual tax bill.

### Key Takeaways

*   The standard deduction is a fixed amount that reduces taxable income, varying according to filing status and inflation adjustments.  
    
*   For 2024, the standard deduction amounts are $14,600 for singles, $21,900 for heads of household, and $29,200 for joint filers.  
    
*   Taxpayers have the choice between taking the standard deduction or itemizing their expenses, depending on which option results in a lower tax bill.  
    
*   Additional standard deductions are available for taxpayers aged 65 or older or those who are blind.

## How the Standard Deduction Works

The Internal Revenue Service (IRS) allows you to take the standard deduction if you do not itemize your deductions using Schedule A of Form 1040 to calculate [taxable income](https://www.investopedia.com/terms/t/taxableincome.asp). Your filing status, age, and other factors determine your standard deduction amount.

Income tax is the amount of money that the federal or state government takes from your taxable income. It is important to note that taxable income and [total income earned](https://www.investopedia.com/terms/g/gross_earnings.asp) for the year are not the same.

The government allows some of your total income to be deducted, reducing the taxable amount. Taxable income is usually smaller than total income due to [deductions](https://www.investopedia.com/terms/d/deduction.asp), which help lower your tax bill.

> **Important**
>
> To qualify as blind, you must have a certified letter from an eye doctor stating that you have non-correctable 20/200 vision in your best eye or that your field of vision is 20 degrees or less.

The IRS allows taxpayers to choose between two different types of deductions—a set of itemized deductions and the standard deduction. The standard deduction is a certain figure set by the government that can be subtracted from your taxable income.

When you claim this figure on your annual tax return, it reduces the amount of income on which you're taxed. The standard deduction is updated annually for inflation and reflects your tax [filing status](https://www.investopedia.com/terms/f/filingstatus.asp).

 If you're 65 or older by the end of the tax year, you qualify for an additional standard deduction. Blind individuals can claim an extra deduction if they are [blind on the last day of the tax year](https://www.investopedia.com/terms/b/blind-taxpayer.asp).

If you can be claimed as a dependent on someone else's tax return, your standard deduction for 2023 was limited to the greater of $1,250 or your earned income plus $400 (up to the amount of the basic standard deduction for your filing status). For 2024, these numbers are $1,300 and $450, respectively.

Standard deduction amounts for the most current tax years are listed below.

## Exceptions and Important Considerations for the Standard Deduction

Not all taxpayers qualify for the standard deduction, which means these individuals can't claim this deduction. You can't claim it if you:

*   Are married and filing separately and your spouse itemizes their deductions
*   Are a nonresident or dual-status alien during the year
*   File a return for less than 12 months because you change your annual accounting period
*   Are a trust, common trust fund, partnership, or an estate

You should itemize if your itemized deductions exceed the standard deduction. Otherwise, you should opt for the standard deduction.  

> **Fast Fact**
>
> Students and business apprentices from India may be eligible to claim the standard deduction under Article 21 of the U.S.-India Income Tax Treaty.

## Current Standard Deduction Figures and Future Changes

New standard deduction amounts were introduced by the [Tax Cuts and Jobs Act](https://www.investopedia.com/taxes/trumps-tax-reform-plan-explained/) at the end of 2017 and nearly doubled the previous amounts. They are set to expire on Dec. 31, 2025.

Here are the standard deduction amounts for the 2023 and 2024 tax years:

As noted above, the federal income tax system and some states have higher standard deductions for people who are at least 65 and for people who are blind. Under federal guidelines, if you are 65 or older or you are blind, you can claim an additional standard deduction.  

For 2023, a dependent's standard deduction is the greater of $1,250, or $400 plus their [earned income](https://www.investopedia.com/terms/e/earnedincome.asp). For 2024, these numbers are $1,300 and $450, respectively.  

You can also increase your standard deduction by the net amount of a disaster loss, but the loss must happen in a federally declared disaster area.

## Comparing Standard and Itemized Deductions: Choosing What's Best for You

The biggest reason taxpayers use the standard deduction instead of [itemized deductions](https://www.investopedia.com/terms/i/itemizeddeduction.asp) is that they don’t have to keep track of every possible qualifying expense throughout the year.

Many find the standard deduction larger than their total itemized tax-deductible expenses. This may be especially true given that the Tax Cuts and Jobs Act limited total state and local tax deductions to $10,000.

It also limited the [mortgage interest deduction](https://www.investopedia.com/terms/home-mortgage-interest.asp) on properties bought after Dec. 15, 2017, to the first $750,000 of debt ($375,000 if married filing separately). The limit was $1 million under previous rules.

Whether you use the standard deduction or itemize your deductions is up to you, but you cannot do both. The itemized deduction option allows you to list all your tax-deductible expenses for the year, such as:

*   [Property tax](https://www.investopedia.com/terms/p/propertytax.asp)
*   [Medical expenses](https://www.investopedia.com/terms/m/medical-expenses.asp)
*   [Eligible charity donations](https://www.investopedia.com/terms/c/charitabledonation.asp)
*   [Gambling losses](https://www.investopedia.com/terms/g/gamblingloss.asp)
*   Other costs incurred that influence your bottom-line tax figure  
    

## What Is the Standard Deduction for 2024?

For tax year 2024, the standard deduction is $14,600 if you file as single or married filing separately. It's $21,900 for heads of household and $29,200 for married filing jointly or qualifying widow(er) taxpayers.  

## What Was the Standard Deduction for 2023?

For tax year 2023, the standard deduction was $13,850 if you filed as single or married filing separately. It was $20,800 for heads of household and $27,700 for married filing jointly or qualifying widow(er) taxpayers.

## What Can I Deduct If I Take the Standard Deduction?

You can claim [above-the-line deductions](https://www.investopedia.com/articles/tax/11/above-the-line-deductions.asp) including retirement plan contributions, health savings account (HSA) contributions, alimony, educator expenses, student loan interest, and health insurance premiums for individual health insurance policies if you are self-employed.

## The Bottom Line

  
The standard deduction offers a simplified way for taxpayers to lower their taxable income without itemizing deductions. For tax years 2023 and 2024, the deduction amounts vary by filing status, with additional considerations for age and disability.

Taxpayers need to decide whether the standard deduction or itemized deductions will provide the greater tax benefit, keeping in mind that eligibility is affected by specific criteria such as filing separately from an itemizing spouse or nonresident status. Choose wisely between the standard deduction and itemizing to optimize your tax situation.  

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