Standard Deduction

The standard deduction is a fixed dollar amount that reduces your taxable income. It's available to all taxpayers who choose not to itemize their deductions on Schedule A of their tax return.

2023 Standard Deduction Amounts

The standard deduction amounts for 2023 are:

• Single filers: $13,850
• Married filing jointly: $27,700
• Married filing separately: $13,850
• Head of household: $20,800

Additional Standard Deduction

Taxpayers who are 65 or older, or blind, can claim an additional standard deduction:

• Single or head of household: Additional $1,850
• Married: Additional $1,500 per qualifying spouse

Standard vs. Itemized Deductions

You should itemize deductions if your total itemized deductions exceed your standard deduction amount. Common itemized deductions include:

• State and local taxes (SALT) up to $10,000
• Mortgage interest
• Charitable contributions
• Medical expenses exceeding 7.5% of AGI

Who Cannot Claim the Standard Deduction

Certain taxpayers cannot use the standard deduction:

• Married individuals filing separately if their spouse itemizes
• Individuals who were nonresident aliens during any part of the year
• Individuals filing returns for periods less than 12 months

Tax Planning Considerations

The standard deduction simplifies tax filing for most taxpayers. However, if you have significant deductible expenses, it may be worth calculating both methods to determine which provides the greater tax benefit.

For complex tax situations involving deductions and tax relief strategies, professional guidance can help optimize your tax position and ensure you're taking advantage of all available deductions.

If you're unsure about your tax obligations or need to verify tax relief options, consulting with a tax professional can provide clarity and peace of mind.