The standard deduction is the hassle-free deduction under the Internal Revenue Code that is available to almost every taxpayer who does not choose itemized deduction. So, the standard deduction is a flat amount of deduction based on your filing status. You have the option of claiming the standard deduction or itemizing your deductions. However, you cannot claim both in the same year.
2023 & 2022 Standard Deduction
The amount of your standard deduction is announced by IRS every year along with tax bracket. It depends on the filing status you qualify for. For example, single taxpayers and married taxpayers who file separate returns can claim a $13,850 standard deduction in 2023 whereas, for the year 2022, it is $12,950. Below is the standard deduction allowed for the year 2023 and year 2022.
|Filing Status||Tax Year 2022||Tax Year 2023|
|Single (married or unmarried)||$12,950||$13,850|
|Married Filing Jointly||$25,900||$27,700|
|Head of Household||$19,400||$20,800|
3 situations that allow additional standard deductions
The federal income tax law recognizes the fact that certain types of taxpayers need to pay less tax and save more. Therefore the Internal Revenue Code or IRC provides additional standard deduction in the following situations.
- If Your age is 65 or older at the end of the tax year.
- If you’re blind on the last day of the tax year.
- If you had a net qualified disaster loss and you elect to increase your standard deduction
|Married Filing Jointly or Married Filing Separately • 65 or older OR blind|
• 65 or older AND blind
|Single or Head of Household • 65 or older OR blind |
• 65 or older AND blind
Taxpayers Who Can’t Claim Standard Deduction
- A married individual filing as married filing separately, whose spouse itemizes deductions.
- An individual, who was a nonresident alien or dual-status alien during the year. However, there are three exceptions to this rule as described below:
- A nonresident alien who is married to a U.S. citizen or resident alien at the end of the tax year and makes a joint election with his or her spouse to be treated as a U.S. resident for the entire tax year;
- A nonresident alien at the beginning of the tax year who is a U.S. citizen or resident by the end of the tax year is married to a U.S. citizen or resident at the end of such tax year, and makes a joint election with his or her spouse to be treated as a U.S. resident for the entire tax year; and
- Students and business apprentices who are residents of India and are eligible for benefits under paragraph 2 of Article 21 (Payments Received by Students and Apprentices) of the United States-India Income Tax Treaty
- An individual who files a return for a period of less than 12 months due to a change in his or her annual accounting period.
- An estate or trust, common trust fund, or partnership
- Anyone who claims itemized deductions.
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