Understanding the 2024 Standard Deduction: What You Need to Know
Millions of taxpayers claim the standard deduction to reduce taxable income on their federal tax returns. The standard deduction is a preset amount you can subtract from your adjusted gross income to reduce your taxable income and tax bill. The standard deduction can save you time and effort, and—when it’s greater than your potential itemized deductions combined—it can even save you money.
The IRS reviews standard deductions each year for cost-of-living adjustments. As it did for the 2023 tax year, the IRS raised 2024 standard deductions as well. In 2024, standard deductions have increased to $14,600 for single filers, $21,900 for heads of household, and $29,200 for married couples filing jointly. Find out how these new deductions will affect you and your taxes when you file in 2025.
What Is the Standard Deduction for 2024?
For the 2024 tax year, the IRS increased standard deductions roughly 5% over 2023 levels. Keep in mind that these increases won’t affect your taxes until you file in 2025. The 2024 standard deductions for all filing statuses are shown below:
- Single and Married Filing Separately: $14,600
- Head of Household: $21,900
- Married Filing Jointly: $29,200
How Does the Standard Deduction Work?
The standard deduction is a set amount of money you can exclude from your taxable income when you’re calculating your federal income taxes. The standard deduction varies by your filing status: single, head of household, married filing jointly, or married filing separately.
Here are a few more things to know about standard deductions:
- You can’t itemize: If you claim the standard deduction, you can’t claim individual itemized deductions like mortgage interest or charity donations that you would list individually and subtract from your taxable income. In that way, standard deductions are limited: You can only deduct the prescribed amount.
- Tax filing is simpler: Standard deductions don’t require any calculations or documentation; you just find your deduction by filing status and plug it in. You don’t have to save receipts or tally up individual expenses, and you don’t have to read IRS fine print to make sure your itemized deductions comply with the rules.
- Standard deductions are relatively generous: The standard deduction effectively makes a portion of your income tax-free by excluding it from taxable income. In 2024, a $21,900 standard deduction for a head of household means the first $21,900 a head of household earns is untaxed.
- An additional deduction applies if you’re blind or over 65: In 2024, you may take an additional standard deduction of $1,950 if you file single or head of household and you’re age 65 or older or blind. If you’re married, the additional standard deduction for seniors or blind individuals is $1,550.
How Much Can I Save With the New Standard Deduction?
Single taxpayers can expect to save up to $277 and married couples up to $555 based on increased standard deductions for 2024, though most people will save less. Your actual tax savings will vary based on your filing status, tax bracket, and any changes to income you’ve experienced from year to year. But, all things being equal, the new standard deductions for 2024 mean less taxable income—and therefore less tax.
How do these adjustments translate to tax savings? Find your tax bracket in one of the charts below and you’ll see your potential tax savings in the column to the right. Not sure which tax bracket you fit into? Check your taxable income from your most recent tax return, or subtract the new standard deduction from your expected adjusted gross income for 2024, then use the appropriate chart (single or married) to locate your bracket.
Potential Savings for Single Filers in 2024
| Rate | Tax Bracket | Potential Savings |
|---|---|---|
| 10% | $0 to $11,600 | Up to $75 |
| 12% | $11,601 to $47,150 | Up to $90 |
| 22% | $47,151 to $100,525 | Up to $165 |
| 24% | $100,526 to $191,950 | Up to $180 |
| 32% | $191,951 to $243,725 | Up to $240 |
| 35% | $243,726 to $609,350 | Up to $262.50 |
| 37% | Over $609,350 | Up to $277.50 |
Potential Savings for Married Couples in 2024
| Rate | Tax Bracket | Potential Savings |
|---|---|---|
| 10% | $0 to $23,200 | Up to $150 |
| 12% | $23,201 to $94,300 | Up to $180 |
| 22% | $94,301 to $201,050 | Up to $330 |
| 24% | $201,051 to $383,900 | Up to $360 |
| 32% | $383,901 to $487,450 | Up to $480 |
| 35% | $487,451 to $731,200 | Up to $525 |
| 37% | Over $731,200 | Up to $555 |
Tax savings shown in these charts are for illustration purposes only. Your results may vary.
As an example, a married couple with $115,000 in taxable income might see $330 in tax savings from 2023 to 2024, assuming their income and tax bracket stay the same. If your taxable income is near the dividing point between two tax brackets, your savings will likely fall somewhere between the tax savings amounts for the two closest brackets.
When Should You Claim the Standard Deduction?
Choose the standard deduction when your itemized deductions don’t add up to more than the standard deduction amount. Not sure what your itemized deductions might be? The standard deduction for single taxpayers in 2024 is $14,600. Common itemized deductions that might take you over the $14,600 threshold include:
- Mortgage interest: You can deduct interest on up to $750,000 of your mortgage when you itemize your deductions.
- Medical and health care expenses: Only unreimbursed expenses that exceed 7.5% of your adjusted gross income are deductible. If your adjusted gross income is $100,000 and you have $20,000 in qualifying medical expenses, for example, you can deduct $12,500 ($20,000 – $7,500).
- State and local taxes: State and local taxes, including property tax, state income taxes, and vehicle registration fees, are deductible up to $10,000.
- Charity donations: You may deduct charitable contributions of up to 60% of your adjusted gross income if you itemize deductions on your tax return. You may deduct up to 100% of your adjusted gross income if a charitable contribution is considered qualified by the IRS.
If you don’t have any of these deductions, or your deductions are low, standard deductions are an easy choice. As long as you’re eligible, you automatically qualify for the full standard deduction for your filing status.
When Should You Itemize?
If you have enough deductions to outweigh the standard deduction, itemize. You’ll need to track and document your expenses, and make sure you’re meeting any other IRS requirements that may apply. Itemizing requires a bit more work, but tax savings are worth it.
Who Can’t Claim the Standard Deduction?
In a few cases, taxpayers aren’t eligible to claim the standard deduction. If any of the following applies to you, you must itemize your deductions:
- You’re married filing separately and your spouse itemizes their deductions.
- You were a nonresident alien or dual status alien during the tax year (with a few exceptions).
- You’re filing a return for a period of less than 12 months due to a change in your annual accounting period.
- You are filing as an estate or trust, common trust fund, or partnership.
The Bottom Line
New standard deductions for 2024 don’t affect your final tax bill until you file in 2025. Still, adjustments for inflation should help bring standard deductions in line with a changing cost of living—and rising incomes as well. If you want to explore your options, you may want to check out tax preparation software that can guide you through available itemized deductions, or consider finding a tax pro who can help you develop a tax strategy to minimize your tax bill and maximize your savings.
For any mortgage service needs, O1ne Mortgage is here to help. Call us at 213-732-3074 to speak with one of our expert loan officers today!
