The standard deduction is a fixed dollar amount that reduces your taxable income, ultimately lowering your tax bill. It’s essentially a “free” deduction offered by the IRS, and it’s comprised of a basic standard deduction amount, potentially increased by additional amounts if you’re age 65 or older and/or blind. Understanding how the standard deduction works is crucial for minimizing your tax liability.
The standard deduction amount is generally adjusted annually to keep pace with inflation. It also varies based on your filing status (single, married filing jointly, etc.), age, whether you’re blind, and whether someone else can claim you as a dependent. However, some taxpayers aren’t eligible for the standard deduction and must itemize instead.
Standard Deduction vs. Itemized Deductions
You can choose to take either the standard deduction or itemize your deductions. Itemizing involves listing out various eligible expenses like medical expenses, state and local taxes (SALT), and charitable contributions. You should choose whichever method results in a lower taxable income. Generally, if your itemized deductions exceed the standard deduction for your filing status, you should itemize. Refer to Topic no. 501, Should I itemize? for more information to help make your decision.
Additional Standard Deduction for Age and Blindness
You may be entitled to an additional standard deduction if you’re age 65 or older at the end of the tax year, or if you’re blind. The IRS considers you to be 65 on the day before your 65th birthday. For tax year 2024, this means you’re considered 65 if you were born before January 2, 1960.
To qualify for the additional deduction for blindness, you must be blind on the last day of the tax year. A single taxpayer who is both age 65 and blind, for example, can claim both the basic standard deduction and the additional amounts for age and blindness.
For tax year 2024, the additional standard deduction for age or blindness is $1,550. However, this amount increases to $1,950 if you’re also unmarried and not a surviving spouse.
For the IRS definition of blindness, refer to Publication 501, Dependents, Standard Deduction, and Filing Information.
How to Claim the Additional Standard Deduction: If you or your spouse were age 65 or older and/or blind at the end of the year, be sure to claim the additional deduction by checking the appropriate boxes for age or blindness on Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors.
Increased Standard Deduction for Disaster Losses
In specific situations, you might be able to increase your standard deduction if you experienced a net qualified disaster loss. If you choose this option, you’ll need to use Schedule A (Form 1040) to calculate your standard deduction. For detailed instructions, see the Instructions for Schedule A and the Instructions for Form 4684.
Standard Deduction for Dependents
If you can be claimed as a dependent on someone else’s tax return, your standard deduction for 2024 is limited. It’s the greater of:
- $1,300, or
- Your earned income plus $450 (but the total can’t exceed the basic standard deduction for your filing status).
Who is Not Eligible for the Standard Deduction?
Certain taxpayers cannot claim the standard deduction:
- Married individuals filing separately whose spouse itemizes deductions.
- Individuals who were nonresident aliens or dual-status aliens during the year (with some exceptions, outlined below).
- Individuals filing a return for a period of less than 12 months due to a change in their annual accounting period.
- Those filing as an estate or trust, common trust fund, or partnership.
Exceptions for Nonresident Aliens and Dual-Status Aliens:
Under specific circumstances, nonresident aliens or dual-status aliens may be eligible for the standard deduction:
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If you’re a nonresident alien married to a U.S. citizen or resident alien at the end of the tax year, and you and your spouse make a joint election to be treated as U.S. residents for the entire tax year.
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If you’re a nonresident alien at the beginning of the tax year, become a U.S. citizen or resident by the end of the tax year, are married to a U.S. citizen or resident at the end of that tax year, and you and your spouse make a joint election to be treated as U.S. residents for the entire tax year.
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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.
For more details, consult Publication 519, U.S. Tax Guide for Aliens.
Navigating the Standard Deduction for Tax Savings
Understanding the standard deduction and whether it’s right for you can save you money on your taxes. Consider your individual circumstances, including your filing status, age, possible blindness, and whether you can be claimed as a dependent. If you’re unsure which option is best for you, consider consulting with a tax professional.
For further information, see How much is my standard deduction?, Publication 501, Publication 17, and Code Section 63(c).
