A flat amount reducing taxable income, claimed instead of itemizing deductions.
The standard deduction is a fixed amount that reduces your taxable income, claimed instead of itemizing specific deductions. For 2024, the standard deduction is $13,850 (single), $27,700 (married filing jointly), $20,800 (head of household), and $13,850 (dependent). The standard deduction increases annually for inflation. Most taxpayers benefit from the standard deduction because their itemizable deductions don't exceed it. To itemize, your deductible expenses (mortgage interest, property taxes, charitable donations, etc.) must total more than the standard deduction. For higher-income earners, homeowners, and those with significant charitable giving, itemizing may save more taxes. The Tax Cuts and Jobs Act nearly doubled the standard deduction, causing most taxpayers to switch from itemizing to the standard deduction.