Unlocking savings this Tax Season 2025: Discover standard deductions with clear examples
The 2025 tax season is underway. Claiming the standard deduction instead of your actual deductions is much easier, but it might cost you more.
The 2025 tax season began in January and will end on April 15, with taxpayers submitting their return corresponding to fiscal year 2024.
When filing their return and Form 1040, taxpayers can itemize their deductions or choose the standard deduction offered by the tax agency.
What is the standard deduction?
The standard deduction is a predetermined amount of income that you are allowed to deduct from your taxable income without having to answer any questions about the deduction. According to official information from the IRS, the standard deduction amounts for tax year 2024 are the following:
- $14,600 for single taxpayers or couples filing separately, under 65 years of age
- $21,900 for heads of household
- $29,200 for couples filing jointly, under 65 years of age
However, taxpayers can choose to itemize their deductions if doing so lowers their taxable income and places them in a lower tax rate.
Tax rates for fiscal year 2024
For tax year 2024, the top tax rate remains 37% for single individual taxpayers with income over $609,351 ($731,201 for married couples filing jointly).
The other rates are the following:
- 35% for income over $243,701 ($487,451 for married couples filing jointly);
- 32% for income over $191,951 ($383,901 for married couples filing jointly);
- 24% for income over $100,501 ($201,051for married couples filing jointly);
- 22% for income over $47,151 ($94,301 for married couples filing jointly);
- 12% for income over $11,601 ($23,201 for married couples filing jointly).
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Cases where the standard deduction cannot be applied
The federal standard deduction is not available to all taxpayers. If you and your spouse are married but want to file your taxes separately and your spouse plans to itemize their deductions, you won’t be able to take advantage of the standard deduction.
Social Security sends $7.5 billion in retroactive payments
If you or your spouse (if filing jointly) were non-resident aliens at any time during the tax year, you also cannot take advantage of this deduction. You also can’t take the standard deduction if you file a return that covers a period less than one year because your annual accounting period has changed.
The downside of the standard deduction
Claiming the standard deduction instead of itemizing your deductions is much easier, but itemizing all your deductions could result in a more significant tax reduction. Some deductions you can prove to the IRS include donations to charities, paid high mortgage interest and property taxes, or high medical expenses.
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