8521 / What is the standard deduction?
The standard deduction is one of two “below-the-line” deduction options available to taxpayers. In other words, once a taxpayer determines adjusted gross income (gross income minus above the line deductions), the taxpayer may also deduct the sum of their exemptions and the greater of 1) the standard deduction; or 2) the sum of their itemized deductions (see Q 8524).2
Planning Point: Because of the increased standard deduction and the elimination of many itemized deductions, more taxpayers now choose the standard deduction under the 2017 tax reform law. Those taxpayers who wish to take advantage of the remaining itemized deductions (for example, the deduction for charitable contributions) can benefit from planning to “bunch” those deductions into a single tax year in order to ensure that itemized deductions exceed the expanded standard deduction.
Taxpayers who do not itemize and who are age 65 or older or blind are entitled to increase their standard deduction. In 2024, taxpayers who are married or are surviving spouses are each entitled to an additional deduction of $1,550 if age 65 or older, as well as an additional $1,500 deduction if blind. The additional standard deduction is $1,550 for 2024 for blind taxpayers or those age 65 or older. The additional standard deduction amount is increased in 2024 to $1,950 if the individual is also unmarried and not a surviving spouse.3 The additional amounts for elderly and blind taxpayers are indexed for inflation.4
[1]. IRC § 63(c)(7), Rev. Proc. 2023-34.
[2]. IRC § 63.
[3]. IRC § 63(f); Rev. Proc. 2023-34.