Standard Deduction

The standard deduction is a fixed dollar amount that reduces the income on which you’re taxed. It’s an alternative to itemizing deductions and is adjusted annually for inflation. Using the standard deduction simplifies filing for many taxpayers and often results in a lower taxable income than adding up itemized expenses.

Key takeaways

• The standard deduction reduces taxable income by a set amount based on filing status.
• For 2024, amounts are: $14,600 (single or married filing separately), $21,900 (head of household), $29,200 (married filing jointly or qualifying widow(er)).
• For 2023, amounts were: $13,850 (single or married filing separately), $20,800 (head of household), $27,700 (married filing jointly or qualifying widow(er)).
• Additional standard deductions are available for taxpayers who are 65 or older and/or blind.
• Taxpayers choose the standard deduction or itemized deductions—whichever yields the lower tax bill.

How it works

Taxable income is calculated by taking your adjusted gross income (AGI) and subtracting either the standard deduction or your itemized deductions. If the standard deduction is larger than your total itemized deductions, it usually makes sense to take the standard deduction.

You may still claim “above-the-line” adjustments (which reduce AGI) even if you take the standard deduction. Examples include certain retirement contributions, health savings account (HSA) contributions, and deductions for self-employed health insurance.

Who can’t take the standard deduction

You cannot claim the standard deduction if you:
* Are married filing separately and your spouse itemizes.
* Are a nonresident alien or a dual-status alien for any part of the year (with limited treaty exceptions).
* File a short tax year because you changed your annual accounting period.
* Are filing for a trust, estate, partnership, or certain other non-individual entities.

Fast fact: Some students and apprentices from India may be eligible for the standard deduction under the U.S.–India tax treaty.

Additional rules and special cases

• Dependents: A dependent’s standard deduction is limited. For 2024 it is the greater of $1,300 or earned income plus $450 (up to the basic standard deduction for the filer’s status). For 2023 the comparable amounts were $1,250 or earned income plus $400.
• Age and blindness: Taxpayers who are 65 or older and/or blind qualify for an additional standard deduction (amounts vary by year and filing status).
• Disaster losses: You may be able to increase the standard deduction by the net amount of a disaster loss if it occurred in a federally declared disaster area.

Standard vs. itemized deductions — when to itemize

Itemize if your deductible expenses exceed the standard deduction. Typical itemizable expenses include:
* Mortgage interest (limits apply to loans after certain dates)
* State and local taxes (SALT) — limited to $10,000
* Property taxes
* Charitable contributions
* Certain medical and dental expenses (subject to AGI thresholds)
* Gambling losses (to the extent of winnings)

The Tax Cuts and Jobs Act (TCJA) nearly doubled the standard deduction beginning in 2018 and also introduced or tightened limits (for example, the $10,000 SALT cap and mortgage interest limits), which made the standard deduction the better choice for many taxpayers. Those TCJA provisions are scheduled to expire after 2025 unless extended by law.

What you can still deduct if you take the standard deduction

Even if you take the standard deduction, you can claim certain adjustments to income (above-the-line deductions) such as:
* Retirement plan contributions (traditional IRA, SEP, SIMPLE, etc., where applicable)
* Health Savings Account (HSA) contributions
* Self-employed health insurance premiums
* Educator expenses (eligible teachers)
* Student loan interest (subject to income limits)
* Alimony paid under pre-2019 divorce agreements (subject to rules)

Making the choice

Compare the total of your itemizable expenses to the standard deduction for your filing status. If itemized deductions are larger, itemize; otherwise, take the standard deduction. Consider additional factors such as eligibility for credits, the SALT cap, and whether one spouse itemizes (which can affect the other spouse if married filing separately).

Bottom line

The standard deduction provides a simple way to lower taxable income without tracking many receipts. Review your expenses annually and compare itemizing versus the standard deduction to determine which reduces your tax liability most effectively.