Standard Deduction Changes: What Taxpayers Need to Know

The standard deduction provides a straightforward method for taxpayers to lower their taxable income. It is a specific dollar amount, determined by filing status, that can be subtracted from adjusted gross income (AGI). This simplifies tax preparation for millions of Americans by eliminating the need to track and document a variety of individual expenses.

Current Standard Deduction Amounts

The Internal Revenue Service (IRS) adjusts the standard deduction amounts annually to account for inflation. For the 2024 tax year, the amounts have increased from the previous year. Single filers and those who are married filing separately will see their standard deduction rise to $14,600, an increase of $750 from the 2023 amount of $13,850.

For married couples filing a joint return, the standard deduction for 2024 is $29,200, which is a $1,500 increase from the $27,700 available in 2023. This amount also applies to qualifying surviving spouses. Taxpayers filing as head of household will be able to claim a standard deduction of $21,900, an increase of $1,100 from the prior year’s $20,800.

| Filing Status | 2023 Standard Deduction | 2024 Standard Deduction |
| — | — | — |
| Single | $13,850 | $14,600 |
| Married Filing Separately | $13,850 | $14,600 |
| Married Filing Jointly | $27,700 | $29,200 |
| Head of Household | $20,800 | $21,900 |
| Qualifying Surviving Spouse | $27,700 | $29,200 |

Additional Standard Deduction for Age or Blindness

Taxpayers who are age 65 or older or are legally blind may be eligible for an additional amount to increase their total standard deduction. The specific amount of this additional deduction depends on the taxpayer’s filing status. A person is considered to be 65 on the day before their 65th birthday; for the 2024 tax year, this means the taxpayer must have been born before January 2, 1960.

For the 2024 tax year, the additional amount for single or head of household filers is $1,950. For those who are married filing jointly, married filing separately, or a qualifying surviving spouse, the additional amount is $1,550 per qualifying individual. This means a married couple where both spouses are over 65 could add $3,100 ($1,550 for each spouse) to their base standard deduction.

A taxpayer who meets both criteria—being at least 65 and legally blind—can claim two additional amounts. For example, a single individual who is 66 and blind would add $3,900 ($1,950 for age and $1,950 for blindness) to their base standard deduction. To claim the deduction for blindness, a person must be certified by a doctor as either completely blind or having vision no better than 20/200 in the better eye with corrective lenses, or a field of vision of 20 degrees or less.

Limitations on Using the Standard Deduction

One of the most common restrictions applies to married couples who choose to file separate tax returns. If one spouse decides to itemize their deductions, the other spouse is not permitted to claim the standard deduction and must also itemize.

A special rule applies to individuals who can be claimed as a dependent on another person’s tax return, such as a child or student. For 2024, the standard deduction for a dependent is limited. It cannot exceed the greater of either $1,300 or the dependent’s earned income plus $450. However, this calculated amount cannot be more than the basic standard deduction for the dependent’s filing status.

Deciding Between Standard and Itemized Deductions

Choosing whether to take the standard deduction or to itemize requires calculating the sum of your potential itemized deductions and comparing it to the standard deduction amount for your filing status. The goal is to select the method that results in the larger total deduction. If the total of your itemized deductions is greater than the standard deduction available to you, you should itemize. If your standard deduction is higher, that will typically be the better option, as it also simplifies the filing process by not requiring detailed record-keeping of expenses.

Common itemized deductions reported on Schedule A (Form 1040) include:

• State and local taxes, which are capped at a combined total of $10,000 per household ($5,000 if married filing separately).
• Home mortgage interest on up to $750,000 of mortgage debt.
• Charitable contributions to qualified organizations.
• Medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI).