What tax filers need to know about the standard deduction
Q: I’ve usually filed an itemized tax return. But now that I no longer qualify for some deductions, I’m wondering if next year I’d be better off taking the standard deduction. What is the standard deduction for 2023? A:
The IRS adjusts the standard deduction annually for inflation. And your standard deduction depends on a few factors, including age and filing status.
For 2023 tax returns, due in April 2024, the standard deduction is $13,850 for those filing as single and married filing separately; $27,700 for married joint filers and qualified widows or widowers; and $20,800 for heads of household.
If you are at least 65 years old or blind, you can claim an additional 2023 standard deduction of $1,850 (also $1,850 if using the single or head of household filing status). If you are 65 and blind, the additional deduction amount is doubled.
The standard deduction works like this: Let’s say that you have $50,000 in income for 2023 and that your filing status is single. The standard deduction is $13,850, which applied to your earned income would bring your taxable income to $36,150.
The IRS offers this guidance if you’re trying to decide whether to itemize or take the standard deduction. You should itemize deductions if:
Your allowable itemized deductions are greater than your standard deduction, or if you can’t use the standard deduction. You can’t use the standard deduction if: You are considered by the IRS to be a “nonresident alien” or a “dual-status alien” during the tax year.
You’re married but filing separate tax returns, and your spouse itemizes deductions.
You file a federal return within a certain period (less than 12 months) due to a change in accounting.
You are filing as an estate, trust or partnership.