Standard Deduction: How Much It Is in 2022-2023 and When to Take It

When it comes time to file your taxes, the IRS gives you two major choices for lowering your taxable income: itemize or take the standard deduction. Most taxpayers opt for the standard deduction simply because it's less work than itemizing, but that doesn't mean it's the right choice for everyone.

Here's a quick overview of what the standard deduction is, who it works best for and the standard deduction amounts for tax years 2022 and 2023.

What is the standard deduction?

The standard deduction is a specific dollar amount that reduces your taxable income. Even if you have no other qualifying deductions or tax credits, the IRS lets you take the standard deduction on a no-questions-asked basis.

How much of a standard deduction you're allowed to take is largely based on your tax-filing status and whether someone can claim you as a dependent. Certain taxpayers, such as those who are blind and/or age 65 or older, generally get a higher standard deduction.

2022 standard deduction

For the 2022 tax year, tax returns are due April 18, 2023. The 2022 standard deduction is $12,950 for single filers and those married filing separately, $25,900 for joint filers, and $19,400 for heads of household.

2023 standard tax deduction

The IRS adjusts the standard deduction amount each year to account for inflation. If you want to get a look ahead at the 2023 tax year (taxes filed in 2024), here's a quick overview of what to expect.

The 2023 standard deduction will increase to $13,850 for single filers and those married filing separately, $27,700 for joint filers, and $20,800 for heads of household.

How the standard deduction works

You can either take the standard deduction or itemize on your tax return — but you can't do both. The standard deduction is a specific dollar amount that you can subtract from your adjusted gross income, or AGI, to reduce how much of your income gets taxed.

Itemized deductions, on the other hand, are basically expenses allowed by the IRS that can decrease your taxable income. These expenses can include things like certain medical costs, property taxes or business mileage.

• Taking the standard deduction means you can't deduct home mortgage interest or take the many other popular tax deductions — medical expenses or charitable donations, for example. (But if you itemize, you should hang onto records supporting your deductions in case the IRS decides to audit you.)

• If someone can claim you as a dependent, you get a smaller standard deduction.

When to claim the standard deduction

If your standard deduction is less than your itemized deductions, you probably should itemize and save money. If your standard deduction is more than your itemized deductions, it might be worth it to take the standard and save some time.

• Try this quick check. Although using the standard deduction is easier than itemizing, if you have a mortgage or home equity loan it’s worth seeing if itemizing would save you money. Use the numbers you find on IRS Form 1098, the Mortgage Interest Statement (you typically get this from your mortgage company at the end of the year). Compare your mortgage interest deduction amount to the standard deduction. Property taxes, state income taxes or sales taxes, and charitable donations can be deductible, too, if you itemize.

• Run the numbers both ways. If you’re using tax software, it’s probably worth the time to answer all the questions about itemized deductions that might apply to you. Why? The software (or your tax pro) can run your return both ways to see which method produces a lower tax bill. Even if you end up taking the standard deduction, at least you’ll know you’re coming out ahead.

» MORE: Ready to file? See our picks for the year's best tax software