What Was the Standard Deduction in 2016?
Understand the foundational tax deduction amounts for the 2016 tax year and how they influenced taxable income. Essential details for accurate filing.
The standard deduction provides a fixed dollar amount that taxpayers can subtract from their adjusted gross income (AGI) to reduce their taxable income. This lowers the amount of income subject to federal income tax, potentially decreasing a taxpayer’s overall tax liability. For the 2016 tax year, the Internal Revenue Service (IRS) set specific standard deduction amounts based on various filing statuses.
Standard Deduction Figures for 2016
For the 2016 tax year, the standard deduction amounts varied depending on a taxpayer’s filing status. A single individual could claim a standard deduction of $6,300. This amount also applied to those who were married but filing their tax returns separately.
Married couples who filed a single tax return together, known as Married Filing Jointly, were eligible for a standard deduction of $12,600. This same $12,600 amount applied to a Qualifying Widow(er). Taxpayers filing as Head of Household could claim a standard deduction of $9,300 for 2016.
Additional Standard Deduction for 2016
Beyond the basic standard deduction, certain taxpayers could claim an additional amount for 2016 if they met specific criteria. An additional standard deduction was available for individuals who were age 65 or older by the end of the tax year. This also applied to taxpayers who were considered blind.
The additional standard deduction amount for 2016 was $1,250 for married individuals, including those filing jointly or separately, and for qualifying widow(er)s. If a taxpayer was unmarried and not a qualifying widow(er), the additional amount was $1,550. If a taxpayer met both conditions, such as being both age 65 or older and blind, they could claim two additional amounts, effectively doubling the applicable additional deduction. For example, a single taxpayer who was 65 and blind could add two times $1,550 to their basic standard deduction.
Choosing Your Deduction
Taxpayers have a choice when preparing their federal income tax return: they can either take the standard deduction or itemize their deductions. The standard deduction is a fixed amount provided by the IRS.
Conversely, itemized deductions involve listing specific eligible expenses, such as certain medical expenses, state and local taxes, and home mortgage interest. Taxpayers elect the method that results in a lower taxable income, thereby reducing their tax obligation. The standard deduction offers a simplified approach compared to the detailed record-keeping required for itemizing.