As you’re preparing your tax return for 2024, you may consider claiming the standard deduction, but you aren’t sure exactly what this means, how it’s determined, or whether you’re better off itemizing instead.
Though the world of taxes, exemptions, and deductions can be confusing, the good news is that the standard deduction is relatively easy to claim and can help lower your tax bill.
In this article, we’ll discuss what the standard deduction is for 2024, how it compares to itemized deductions, and additional considerations you should be aware of as you get ready to file your return.
The standard deduction is an amount taxpayers can claim upon filing their taxes that will reduce their taxable income and, thereby, what they owe.
How does the standard deduction work in practice? Let’s say a single taxpayer earns $50,000 for the year, and they take the standard deduction offered that year of $14,000. In this case, they would only owe income taxes on the difference, or $36,000. Thus, $14,000 of their income for the year would essentially be tax-free.
As we’ll cover in further detail below, this is not a fixed amount that applies year after year. It can fluctuate from one year to the next to reflect inflation and potential legislative changes. The Internal Revenue Service (IRS) announces the amount that will apply for each tax year, typically in the fall.
It’s also important to note that the standard deduction is not the same for all taxpayers. The specific amount will differ based on the taxpayer’s filing status, age, and whether they’re on disability.
How much is the standard deduction for 2024, and how does it differ from the previous tax year? We will now cover any changes to the 2024 amount from 2023 and what taxpayers can expect for the 2025 tax year.
Whether you missed filing your taxes last year or you’re interested in how the amount has changed since you last filed, you might want to know what this amount was for the tax year 2023.
Tax returns for 2023, due at the beginning of 2024, were subject to the following standard deduction amounts:
The standard deduction for 2023 for each type of taxpayer increased from the 2022 levels. For example, the deduction for married couples filing jointly increased by $1,800, for single taxpayers and married individuals filing separately by $900, and for heads of households by $1,400.
The IRS has announced the following standard deduction amounts that apply to the 2024 tax year, with returns due April 15, 2025:
Compared to the above values for 2023, the values increased for all filers for the 2024 tax year, including a $1,500 increase for married couples filing jointly, a $750 increase for single taxpayers and married individuals filing separately, and a $1,100 increase for heads of households.
Though the 2025 tax year has only just begun, the IRS has already announced the amounts that will apply when returns are due next April:
The amount has increased modestly for each type of filer: $400 for single taxpayers and couples filing separately, $800 for married taxpayers filing jointly, and $600 for heads of households.
If you’d like to discuss your eligibility and create a strategy to minimize your tax liability for the current tax year, meet with a licensed professional from Bob’s Bookkeepers and ask about our tax accounting services.
Most taxpayers qualify for the standard deduction, though the specific amount that applies to them varies by factors like age and filing status, as illustrated above.
In general, the IRS outlines a few types of taxpayers who are not eligible to take it, including:
You may also have some limitations if someone else can claim you as a dependent on their tax return. Additionally, certain exceptions apply to nonresident aliens or dual status aliens. Such individuals can refer to Publication 519 for additional details regarding their eligibility.
Those who are eligible can claim it on their tax return without needing to provide further information or documentation.
However, taxpayers also have the option to itemize instead, listing out each of the qualifying expenses they made throughout the year that the IRS considers tax-deductible. Filers who take this route must provide supporting receipts and documentation to back up the amount they’re claiming.
So, when does it make sense to take the standard deduction? The simple answer is that filers should choose the option that would result in the largest reduction of taxable income. If the taxpayer made tax-deductible expenses totaling more than the standard deduction amount they qualify for, then it makes more sense to itemize.
Otherwise, claiming the standard deduction is easy to do and reduces filers’ taxable income by a meaningful amount.
To further demonstrate when it makes sense to take a standard deduction, let’s consider a side-by-side example to compare it with itemizing.
Let’s use the scenario of a single individual who is currently preparing their tax return for 2024. They would qualify for the single standard deduction for 2024 of $14,600.
Throughout the year, the person made the following tax-deductible expenses:
If the person earned $85,000 in 2024, the standard deduction would decrease their taxable income to $70,400. However, if they itemized instead, it would only decrease their taxable income to $72,300. Thus, it makes more sense in this scenario to take the standard deduction for a lower tax bill.
There are some additional considerations that might impact the standard deduction amount you’re entitled to, which we’ll now review in further detail.
On top of the standard amount that taxpayers can be eligible for, there is an additional standard deduction amount for those who are over the age of 65 or are blind. For the 2024 tax year, the amounts for these individuals are as follows:
Both amounts have increased slightly from the previous year. It increased by $100 for single filers and heads of households and by $50 for married taxpayers or qualifying surviving spouses.
So, a person who is 72 years old and is entitled to the standard deduction for singles for 2024 would have a total standard deduction of $14,600 + $1,950 = $16,550.
As discussed throughout, claiming the standard deduction will lower your taxable income. However, you may still be eligible for other deductions or tax credits like the Child Tax Credit and Earned Income Tax Credit. Different from deductions, tax credits reduce your tax liability, not your taxable income.
There’s generally no direct impact of claiming the standard deduction on your eligibility for tax credits. Instead, these are generally determined by your number of dependents, income, and other factors.
The standard deduction impacts your taxable income for federal income taxes, but how does it impact what you owe at the state level?
The truth is — it depends. Some states will calculate income taxes based on the taxable income determined after the standard deduction. In this case, it can also help to lower the state income taxes you pay.
On the other hand, some states determine your tax liability based on your adjusted gross income, not considering the standard deduction.
It’s easy to claim the standard deduction. As previously mentioned, you don’t need any supporting proof of expenses or documentation to claim it.
If filing by paper, you can write in the standard deduction amount that you qualify for on line 12 of Form 1040. If filing online, there is typically a checkbox you can select to claim the standard deduction.
The standard deduction is a relatively straightforward concept, though it’s common to have questions about how it works and who is eligible to claim it. In summary, it helps taxpayers reduce their taxable income and you should generally always claim it unless your itemized deductions would be greater.
Keep in mind that factors like your filing status and age determine the amount that applies to you, and the standard deduction amount tends to increase gradually over time to adjust for inflation.
If you have questions about the standard deduction or any other tax credits your business might qualify for, the team at Bob’s Bookkeepers is here to help. We offer comprehensive tax accounting services, from planning and preparation to filing your returns.
Contact us today to learn more about our comprehensive tax services.
