Standard deduction

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Under United States tax law, the standard deduction is a dollar amount that non-itemizers may subtract from their income before income tax is applied. Taxpayers may choose either itemized deductions or the standard deduction, but usually choose whichever results in the lesser amount of tax payable. The standard deduction is available to US citizens and aliens who are resident for tax purposes and who are individuals, married persons, and heads of household. The standard deduction is based on filing status and typically increases each year. It is not available to nonresident aliens residing in the United States (with few exceptions, for example, students from India on F1 visa status can use the standard deduction). Additional amounts are available for persons who are blind and/or are at least 65 years of age.

The standard deduction is distinct from personal exemptions, which also are available to all taxpayers and dependents. The Tax Cuts and Jobs Act of 2017 eliminates the personal exemption from 2018-2025, while also nearly doubling the standard deduction.

Video Standard deduction

Basic standard deduction

The applicable basic standard deduction amounts for tax years 2006-2018 are as follows:

Maps Standard deduction

Other standard deduction in certain cases

The standard deduction may be higher than the basic standard deduction if any of the following conditions are met:

• The taxpayer is 65 years of age or older;
• The taxpayer's spouse is 65 years of age or older;
• The taxpayer is blind (generally defined as not having corrected vision of at least 20/200 or as having extreme "limitation in the fields of vision"); and/or
• The taxpayer's spouse is blind (see definition above).

For each applicable condition, a taxpayer adds $1,100 to his/her standard deductions (for 2010). However, the additional deduction is $1,400 for unmarried individuals.

For dependents, the standard deduction is equal to earned income (that is, compensation for services, such as wages, salaries, or tips) plus a certain amount ($300 in 2010). A dependent's standard deduction cannot be more than the basic standard deduction for non-dependents, or less than a certain minimum ($950 in 2010).

Consider the following examples:

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References

• 1040 Instruction Booklet for year 2005, Page 36.
• Revenue procedure 13-35, https://www.irs.gov/pub/irs-drop/rp-13-35.pdf, 2014 adjustments for inflation.

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External links

• Internal Revenue Service Website

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