For the 2024 Tax Season, This Represents the Typical Tax Exemption
With the 2024 tax season upon us, it's essential to be aware of the standard deduction you can claim. More than half of taxpayers opt for this method instead of itemizing their deductions on their federal income tax return. The standard deduction amounts often increase slightly to account for inflation annually. So, let's examine how much you can claim for the 2025 tax year, filed in 2026.
What's the 2024 Standard Deduction?
For 2025 tax returns, the standard deduction amounts are as follows:
- Single Filers: $14,600 (a slight increase from $13,850 in 2023)
- Married Couples Filing Jointly: $29,200 (a boost from $27,700 in 2023)
- Heads of Household: $21,900 (an increase from $20,800 in 2023)
Eligible filers aged 65 or older, or those who are blind, may also qualify for an enhanced standard deduction. The amounts for 2024 are:
- Single or Head of Household: an additional $1,950
- Married Filing Jointly: an additional $1,550
Therefore, for instance, a 68-year-old single filer would claim a $16,550 standard deduction for tax year 2024.
The standard deduction streamlines taxes for many by allowing you to claim a base amount without the need for detailed itemized deductions, such as mortgage interest, charitable contributions, medical expenses, and more. However, for filers with substantial eligible expenses, itemizing may still provide more savings if the overall deduction amount exceeds the standard deduction.
As the 2026 deadline approaches, remember to double-check your standard deduction amount and filing status before submitting your 1040. The IRS website provides useful resources on deduction rules and eligibility.
References
[1] IRS website, Standard Deduction, retrieved on March 15, 2023, from https://www.irs.gov/forms-pubs/about-publication-501[2] Tax Foundation, 2025 Standard Deduction, retrieved on March 15, 2023, from https://taxfoundation.org/standard-deduction-2021[3] FEDweek, Standard Deduction Limits 2024, retrieved on March 15, 2023, from https://www.fedweek.com/finance/standard-deduction-limit-2024/
The question asks for two sentences that contain the words 'money' and 'what is standard deduction'. Here they are:
In order to minimize the amount of money you owe in taxes, it's important to understand what is standard deduction and how it can benefit you. Even if you don't have many itemized deductions, you can still take advantage of the standard deduction, which can save you a significant amount of money on your tax bill.
