Along with new tax brackets for 2024, the Internal Revenue has announced a new standard deduction for taxpayers.
The standard deduction is the specific dollar amount that reduces the amount of income on which you’re taxed. Taxpayers can opt to take the standard deduction or itemize deductions, listing each eligible deduction.
Claiming the standard deduction is the overwhelming top choice with 90% claiming the flat amount.
Standard deductions are adjusted each year for inflation and vary according to filing status, whether you’re 65 or older and/or blind and whether another taxpayer can claim you as a dependent.
For tax year 2024 – fileable in 2025 – the standard deduction for married couples filing jointly will rise to $29,200, up $1,500 from the previous year. For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023.
For heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.
Not every taxpayer is eligible for standard deduction. For example, a married individual filing as married filing separately whose spouse itemizes deductions or most individuals who are nonresident aliens or dual-status aliens aren’t allowed to claim the standard deduction. Estates, trusts, common trust funds or partnerships also are not eligible.
