What Is the Standard Deduction for 2022-2023?

Did you know that the IRS allows individuals who are age 65 or older or 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.

Remind me, what’s the standard deduction?

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:

• A married individual filing separately whose spouse itemizes deductions.
• An individual who was a nonresident alien or dual status alien during the year (certain exceptions may apply).
• 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.
  

Some parting thoughts

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. The smart thing to do is to consult a tax professional to determine the best way to file your returns.