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The IRS gives you two major choices for lowering your taxable income: take the standard deduction or itemize. Most taxpayers opt for the standard deduction simply because it's less work than itemizing, but that doesn't mean it's the right choice for everyone.
Here's a quick overview of the standard deduction, which taxpayers it works best for, and the standard deduction amounts for tax years 2022 and 2023. Plus, learn about the additional standard deduction amounts for those 65 and older.
What is the standard deduction?
The standard deduction is a specific dollar amount that reduces your taxable income. Even if you have no other qualifying deductions or tax credits, the IRS lets most people take the standard deduction on a no-questions-asked basis.
However, you may not be eligible for the standard deduction if the following apply:
You are married filing separately, and your partner chooses to itemize. You must then also itemize.
You are filing a return as a trust, estate, or partnership.
Your return covers a period of less than a year because of accounting period changes.
You are considered a "nonresident alien" or "dual-status alien" of the U.S. (but there are some exceptions; see Publication 519).
How much of a standard deduction you're allowed to take is largely based on your tax-filing status and whether someone can claim you as a dependent. Certain taxpayers, such as those who are blind and/or age 65 or older, generally get a higher standard deduction, sometimes called an additional standard deduction.
Standard deduction 2022 (taxes due April 2023)
For the 2022 tax year, tax returns were due April 18, 2023. Taxpayers who filed for an extension before the tax-filing deadline have until Oct. 16, 2023, to file. The 2022 standard deduction is $12,950 for single filers and those married filing separately, $25,900 for joint filers, and $19,400 for heads of household.
Filing status | 2022 standard deduction |
|---|---|
Single | $12,950. |
Married, filing separately | $12,950. |
Married, filing jointly; qualifying widow/er | $25,900. |
Head of household | $19,400. |
Standard deduction 2023 (taxes due April 2024)
The 2023 standard deduction for taxes filed in 2024 will increase to $13,850 for single filers and those married filing separately, $27,700 for joint filers, and $20,800 for heads of household.
Filing status | 2023 standard deduction |
|---|---|
Single | $13,850. |
Married, filing separately | $13,850. |
Married, filing jointly; qualified widow/er | $27,700. |
Head of household | $20,800. |
Additional standard deduction
People who are 65 or older and those who are considered blind by IRS definition are entitled to an additional standard deduction amount that they may add to their existing base standard deduction. How much extra depends on filing status and which conditions are applicable.
2022 additional standard deduction | 2023 additional standard deduction | |
|---|---|---|
Single or head of household | ||
65 or older or blind. | $1,750. | $1,850. |
65 or older and blind. | $3,500. | $3,700. |
Married filing jointly or married filing separately | ||
65 or older or blind. | $1,400 (per qualifying individual). | $1,500 (per qualifying individual). |
65 or older and blind. | $2,800 (per qualifying individual). | $3,000 (per qualifying individual). |
To be eligible for the age-based additional standard deduction, you must have turned 65 by the end of the tax year.
To qualify for the additional standard deduction for blindness, the IRS requires that you are either totally blind or have received a statement from an eye doctor confirming that you see less than 20/200 in your better-functioning eye or your field of vision is 20 degrees or fewer. You may also qualify if contact lenses are able to correct the above conditions, but you are unable to wear them due to pain or infection.
2022 vs. 2023 standard deduction
As you might have noticed, the standard deduction amounts for tax years 2022 and 2023 differ by several hundred dollars. That's because the IRS adjusts a number of tax provisions, including the standard deduction, each year to account for inflation. These annual inflation adjustments help to ensure that people continue to get value out of certain tax breaks as the cost of living rises.
For the 2023 tax year (taxes filed in 2024), the standard deduction will rise considerably — about 7% — as a result of higher-than-usual inflation. This means, for example, that the standard deduction for single filers will increase by $900 and by $1,800 for those married filing jointly.
Filing status | Standard deduction 2022 | Standard deduction 2023 |
|---|---|---|
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. |
How the standard deduction works
You can either take the standard deduction or itemize on your tax return. The standard deduction is a specific dollar amount that you can subtract from your adjusted gross income, or AGI, to reduce how much of your income gets taxed. If someone can claim you as a dependent, you get a smaller standard deduction. On the other hand, if you're above a certain age or blind, your standard deduction increases.
Itemized deductions, on the other hand, are basically expenses allowed by the IRS that can decrease your taxable income. These expenses can include things like certain medical costs, property taxes or business mileage.
Taking the standard deduction means you can't deduct home mortgage interest or take certain types of tax deductions. But if you itemize, you should hang onto records supporting your deductions in case the IRS decides to audit you.
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When to claim the standard deduction
If your standard deduction is less than your itemized deductions, you probably should itemize and save money. If your standard deduction is more than your itemized deductions, it might be worth it to take the standard and save some time.
Try this quick check. Although using the standard deduction is easier than itemizing, if you have a mortgage or home equity loan it’s worth seeing if itemizing would save you money. Use the numbers you find on IRS Form 1098, the Mortgage Interest Statement (you typically get this from your mortgage company at the end of the year). Compare your mortgage interest deduction amount to the standard deduction. Property taxes, charitable donations, and state income taxes or sales taxes can be deductible, too, if you itemize.
Run the numbers both ways. If you’re using tax software, it’s probably worth the time to answer all the questions about itemized deductions that might apply to you. Why? The software (or your tax pro) can run your return both ways to see which method produces a lower tax bill. Even if you end up taking the standard deduction, at least you’ll know you’re coming out ahead.
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