It’s the second most wonderful time of the year: Tax season.
Hopefully we can help make your life a little easier by saving you from having to scroll through the IRS website to look up the standard deduction amounts for the 2023 and 2024 tax years.
Did you know that the IRS allows individuals who are age 65 and older or are blind to take an additional standard deduction? If this applies to you or your spouse, be sure to check the appropriate boxes on your Form 1040. See IRS topic #551: Standard Deduction for more information.
You can claim deductions on your federal tax return one of two ways. You can use the standard deduction or you can itemize your deductions.
The standard deduction is the dollar amount you’re allowed to take on your tax return to reduce your overall taxable income. The amount of the deduction is usually adjusted each year for inflation.
But not everyone may take the standard deduction. For example, taxpayers who choose to itemize their deduction (this is when you list and add up your eligible deductions one by one) cannot claim the standard deduction. The IRS also provides the following list of taxpayers who are not eligible:
When it comes to choosing between taking the standard deduction or itemizing your deductions, typically, individuals choose the deduction method that provides the largest reduction to their taxable income. But taxes are complicated, and each person’s tax situation is different. If you have questions, it’s a good idea to consult a tax professional to determine the best way to file your returns.
This article is for informational purposes only and is not a substitute for individualized professional tax advice. Individuals should consult their own tax advisor for matters specific to their own taxes. This article was prepared by and approved by Marcus by Goldman Sachs, but does not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Goldman Sachs Bank USA and Goldman Sachs & Co. LLC are not providing any financial, economic, legal, accounting, tax or other recommendations in this article. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. Information contained in this article does not constitute the provision of investment advice by Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates. Neither Goldman Sachs Bank USA, Goldman Sachs & Co. LLC nor any of their affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements of any information contained in this document and any liability therefore is expressly disclaimed.