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 3
you can take advantage of an additional standard deduction if you are 65 or over at the end of the tax year you are considered to be 65 on the day before your 65th birthday people who are blind may claim an additional deduction provided they are blind on the last day of the tax year 73if 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 78standard deduction amounts for the most current tax years are listed below special considerationsnot all taxpayers qualify for the standard deduction which means these individuals can t claim this deduction you can t claim it if you if the total value of itemized deductions is higher than the standard deduction you would itemize otherwise you should opt for the standard deduction 9students and business apprentices from india may be eligible to claim the standard deduction under article 21 of the u s india income tax treaty 10standard deduction amountsnew standard deduction amounts were introduced by the tax cuts and jobs act at the end of 2017 and nearly doubled the previous amounts they are set to expire on dec 31 2025 11here are the standard deduction amounts for the 2023 and 2024 tax years 12as 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 37standard deductions for an individual being claimed as a dependent could not be more than 1 250 or a total of 400 plus the individual s earned income for 2023 for 2024 these numbers are 1 300 and 450 respectively 87you 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 12standard deduction vs itemized deductionsthe biggest reason taxpayers use the standard deduction instead of itemized deductions is that they don t have to keep track of every possible qualifying expense throughout the year many people may also find the standard deduction amount greater than the total that they could reach if they added up all their eligible tax deductible expenses separately this may be especially true given that the tax cuts and jobs act limited total state and local tax deductions to 10 000 13it also limited the mortgage interest deduction 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 14whether 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 