With tax season underway, you'll need to know the standard deduction amount you can claim for 2023. After all, most taxpayers opt to take the standard deduction rather than itemizing deductions on their federal income tax return. The standard deduction amounts tend to increase slightly each year to adjust for inflation. So let's take a look at how much you can claim in 2024 for the 2023 tax year.

What's this year's standard deduction?

For tax returns filed in 2024 for the 2023 tax year, here are the standard deduction amounts:

• Single filers: $13,850 (up from $13,600 in tax year 2022)

• Married couples filing jointly: $27,700 (up from $27,300 in tax year 2022)

• Heads of household: $20,800 (up from $20,500 in tax year 2022)

Filers who are 65 or older or are blind may be eligible to claim an even higher standard deduction. For 2023, the amounts are:

• Single or head of household: an additional $1,850 (or $3,700 if also blind)

• Married filing jointly: an additional $1,500 (or $3,000 if also blind)

So for example, a 68-year-old single filer would claim a $15,850 standard deduction for tax year 2023.

The standard deduction makes taxes simpler for many—you can claim this base amount without having to detail itemized deductions like mortgage interest, charitable gifts, medical expenses and more. But for some filers who do have significant eligible expenses, itemizing remains the better route if the total exceeds the standard deduction.

As the 2023 tax season gets underway, double-check your standard deduction amount and filing status before preparing your 1040. The IRS website also offers useful resources on deduction rules and eligibility.

from LifeHacker https://ift.tt/nwsrHR3