What Is the Standard Deduction?
The standard deduction is a fixed dollar amount that reduces your taxable income, lowering the amount of income you pay taxes on. It’s an alternative to itemizing deductions (like mortgage interest, medical expenses, or charitable donations).
Key Details for 2024 (Tax Year 2023)
| Filing Status | 2023 Standard Deduction | 2024 Standard Deduction | |———————|————————|————————| | Single | $13,850 | $14,600 | | Married Filing Jointly | $27,700 | $29,200 | | Head of Household | $20,800 | $21,900 | | Married Filing Separately | $13,850 | $14,600 |
(Note: Amounts adjust annually for inflation.)
Who Can Claim It?
- U.S. residents (citizens, green card holders, and H-1B visa holders meeting the Substantial Presence Test).
- Nonresident aliens (e.g., F-1 students in first 5 years) cannot claim the standard deduction (must itemize or take $0).
Standard Deduction vs. Itemizing
- Take the standard deduction if it’s higher than your total itemized deductions.
- Itemize deductions (Schedule A) if your eligible expenses (e.g., mortgage interest, medical bills >7.5% of income, large charitable donations) exceed the standard deduction.
Example:
- If you’re Single in 2024, your standard deduction is $14,600.
- If your itemized deductions (e.g., $10K mortgage interest + $3K donations) total $13K, you’d take the standard deduction instead (since $14,600 > $13K).
Special Cases
- Dependents:
- If someone can claim you as a dependent (e.g., F-1 students with parents filing for them), your standard deduction is limited to the greater of:
- $1,250 (2024), or
- Your earned income + $400 (up to the normal standard deduction).
- If someone can claim you as a dependent (e.g., F-1 students with parents filing for them), your standard deduction is limited to the greater of:
- Seniors/Blind:
- Extra standard deduction for those 65+ or blind ($1,550+ for Single, $1,250+ for Married in 2024).
Why It Matters
- Reduces your taxable income, lowering your tax bill.
- Simplifies filing (no need to track receipts for itemizing).
Tax Tip: Most Americans take the standard deduction because it’s larger than their itemized expenses.