Standard Deduction
To simplify tax calculations and to reduce the burden of auditing itemized deductions by the Internal Revenue Service (IRS), tax law provides for a standard deduction that most taxpayers can choose if it exceeds their itemized deductions. This deduction is an adjustment from gross income. Sometimes, Congress set the standard deduction to equal the poverty level, but was not consistent. Nowadays, the standard deduction is considerably less than the poverty level. Nonetheless, most people do claim the standard deduction rather than itemize. About 65.6% of all returns claimed the standard deduction. Although one ostensible goal of the standard deduction is to allow poor people to keep more of their money, the standard deduction does not save on payroll taxes, which is generally the greatest tax burden on poor people.
The standard deduction is a specific amount, adjusted annually for inflation, which can be deducted from adjusted gross income to arrive at taxable income, and varies according to the filing status of the taxpayer. However, no standard deduction can be claimed when calculating the alternative minimum taxable income (AMTI). For tax year 2020 only, up to $300 of cash charitable contributions can be deducted without itemizing.
Some taxpayers are ineligible for the standard deduction. These include married taxpayers filing separate returns where one spouse itemizes his deductions, in which case, the other spouse cannot claim the standard deduction, even if the spouse is 65 or older or blind or both unless one spouse also qualifies to file as head of household. There is also no standard deduction for nonresident aliens, estates or trusts, partnerships, and individuals with a short tax year because of a change in their annual accounting period. A dual-status alien who was not a resident of the United States for any part of the tax year cannot take a standard deduction unless the taxpayer files a joint return with a spouse who is a United States citizen or resident and elects to be taxed on worldwide income.
There are 2 types of standard deduction: the basic standard deduction and the additional standard deduction.
Basic Standard Deduction
The basic standard deduction can be claimed by most taxpayers and is based solely on filing status. Because the standard deduction is so high, most taxpayers claim the standard deduction rather than itemize deductions.
| Year | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Single, Married filing separately | $15,000 | $14,600 | $13,850 | $12,950 | $12,550 |
| Head of household | $22,500 | $21,900 | $20,800 | $19,400 | $18,800 |
| Married filing jointly, Qualifying surviving spouse | $30,000 | $29,200 | $27,700 | $25,900 | $25,100 |
| Kiddie Tax Standard Deduction | $1,350 | $1,300 | $1,250 | $1,150 | $1,100 |
| Kiddie Tax Earned Income Deduction = Earned Income from Work + | $450 | $450 | $400 | $400 | $350 |
If a child is subject to the kiddie tax, then:
- Standard Deduction = Greater of
- Kiddie Tax Standard Deduction
- or the Kiddie Tax Earned Income Deduction, up to the standard deduction for earnings, listed in the above table.
The Tax Cuts and Jobs Act eliminated the Pease phaseout of itemized deductions for tax years 2018 - 2025.
Additional Standard Deduction
There is also an additional standard deduction for taxpayers who are at least 65 or blind. The taxpayer can claim an additional standard deduction for a qualifying spouse, but not a dependent. Hence, married taxpayers filing jointly can claim an additional standard deduction if they're both over 65 or blind by the end of the tax year or on January 1 of the next year.
A married taxpayer can claim the additional standard deductions for a spouse who had no gross income nor was claimed by another taxpayer as a dependent. However, the taxpayer cannot claim the additional standard deduction if the spouse was also claimed as a dependent.
An additional standard deduction can also be claimed for blindness regardless of age. The requirements for the additional standard deduction for blindness include a certified statement from the doctor or registered optometrist that states that the individual cannot see better than 20/200 in the better eye with glasses or contact lenses; or that the individual's field of vision is 20° or less.
| Year | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|---|
| Single, Head of Household | $2,000 | $1,950 | $1,850 | $1,750 | $1,700 | $1,650 |
| Joint Filers, Surviving Spouses | $1,600 | $1,550 | $1,500 | $1,400 | $1,350 | $1,300 |
For married couples, the amount applies to each eligible spouse.
Each taxpayer may claim double the additional standard deduction if they are both 65 or older and blind.
Benefit of Itemized Deductions over the Standard Deduction
Since anyone can claim the standard deduction, the benefit of claiming itemized deductions is limited to the amount exceeding the standard deduction:
Additional Deduction Over Standard Deduction
- = Total of Itemized Deductions
- − Standard Deduction
The apportioned benefit of any given itemized deduction can be calculated by this formula:
| Itemized Deduction Benefit | = | Itemized Deduction | × | (Total Itemized Deductions − Standard Deduction) Total Itemized Deductions |
Example: The Apportioned Benefit of Claiming a Particular Itemized Deduction over Claiming the Standard Deduction
Suppose you have investment interest expenses of $2000 out of a total of $10,000 of itemized deductions. Since the interest on loans used to purchase investment property is an itemized deduction, the value of this $2000 deduction over claiming the standard deduction is as follows:
- Investment Interest Expense = $2000
- Total Itemized Deductions = $10,000
- Standard Deduction = $6000
Then:
Investment Interest Deduction Benefit over Standard Deduction
- = $2000 × ($10,000 − $6000)/$10,000
- = $2000 × $4000/$10,000
- = $800
Notes
Schoolteachers can deduct up to $300, adjusted periodically for inflation in $50 increments, for the cost of supplies, materials, and other classroom expenditures. This deduction is available even if the standard deduction is claimed. Teachers, instructors, counselors, principals, and aides working at least 900 hours per school year who provide public, or private, elementary or secondary education are eligible. Spouses filing jointly can claim up to $600 if both are eligible. However, expenses for homeschooling cannot be deducted.
Historical Standard Deduction Rates
| Year | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|---|---|---|
| Single, Married filing separately | $12,400 | $12,200 |
$12,000 | $6,350 | $6,300 | $6,300 | $6,200 | $6,100 | $5,950 | $5,800 |
| Head of household | $18,650 | $18,350 |
$18,000 | $9,350 | $9,300 | $9,250 | $9,100 | $8,950 | $8,700 | $8,500 |
| Married filing jointly, Qualifying surviving spouse | $24,800 | $24,400 |
$24,000 | $12,700 | $12,600 | $12,600 | $12,400 | $12,200 | $11,900 | $11,600 |
| Kiddie Tax Standard Deduction | $1,100 | $1,100 | $1,050 | $1,050 | $1,050 | $1,050 | $1,000 | $1,000 | $950 | $950 |
If a child is subject to the kiddie tax, then:
Standard Deduction = Greater of Kiddie Tax Standard Deduction or Earned Income + $350, up to the standard deduction for earnings, listed in the above table.
| Year | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|---|---|---|
| Single, Head of Household | $1,650 | $1,650 | $1,600 | $1,550 | $1,550 | $1,550 | $1,550 | $1,500 | $1450 | $1450 |
| Joint and Separate Filers, Surviving Spouses | $1,300 | $1,300 | $1,300 | $1,250 | $1,250 | $1,250 | $1,200 | $1,200 | $1150 | $1150 |
The Tax Cuts and Jobs Act did not change the additional standard deduction.