What is my Standard Deduction?

As long as the income tax system has existed, the IRS has allowed taxpayers to exempt at least a small part of their incomes from tax. This is known as the "Standard Deduction." This video tells you what the Standard Deduction is, and how it's calculated for various situations.

2023 UPDATE:

Standard Deductions for 2023:

Single: $13,850 (add $1,850 each if you are over age 65 or blind)
Married Filing Jointly: $27,700 (add $1,500 for each spouse that is over 65 or blind)
Married Filing Separately: $0 if spouse itemizes deductions, $13,850 if not
Head of Household: $20,800 (add $1,850 each if you are over 65 of blind)
Qualifying Surviving Spouse: $27,700 (add $1,500 each if you are over 65 or blind)

Unmarried dependents under age 65: $1,250 in unearned income, or $350 plus earned income to a maximum of $13,850

Additional Resources:

The Tax Geek on The Site Formerly Known as Twitter: @taxgeekusa

Image Credit:

"1913 Form 1040": Library of Congress

Intro and background music: “Bluesy Vibes” - Doug Maxwell - YouTube Audio Library

DISCLAIMER:

The information presented in this video is for informational and educational purposes only, and is not intended to render tax advice for specific situations. If you have questions about your specific tax situation, please consult the resources linked above or consult with a qualified tax professional in your community.

The information contained in this video is based on tax law and IRS regulations as of the date of publication, and may be subject to change.

[TheTaxGeek]

2023 UPDATE:

Standard Deductions for 2023:

Single: $13, 850 (add $1, 850 each if you are over age 65 or blind)
Married Filing Jointly: $27, 700 (add $1, 500 for each spouse that is over 65 or blind)
Married Filing Separately: $0 if spouse itemizes deductions, $13, 850 if not
Head of Household: $20, 800 (add $1, 850 each if you are over 65 or blind)
Qualified Widow(er): $27, 700 (add $1, 500 each if you are over 65 or blind)

Unmarried dependents under age 65: $1, 250 in unearned income, or $350 plus earned income to a maximum of $13, 850

[SuperGreatSphinx]

Under United States tax law, the standard deduction is a dollar amount that non-itemizers may subtract from their income before income tax (but not other kinds of tax, such as payroll 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 individuals who are US citizens or resident aliens.

The standard deduction is based on filing status and typically increases each year, based on inflation measurements from the previous 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 the personal exemption, which was eliminated by the Tax Cuts and Jobs Act of 2017 for tax years 2018–2025.

[TraciReeder-ejcd]

Does your employer have control over the amount of deduction from each pay period...

[TraciReeder-ejcd]

Thank you for clearly explaining deductions...
Could you explain how deductions are determined based on the gross amount of each pay period . Does the deduction increase if the gross amount has increased
Or
should the deduction be consistent from each pay period?
Ex.) Hrs wrk:
143hrs worked pay period
x $24 per hr.
= $3432

Should the
YTD match the current deductions
Thank you