When to Use the Standard Deduction: Simplifying Your Taxes
Deciding whether to take the standard deduction is one of the most important choices when filing your taxes. The standard deduction is a flat-dollar amount that reduces the amount of your income that’s subject to tax. It simplifies the filing process, making it a great option for many taxpayers. But how do you know if it's the right choice for you?
For 2024, the standard deduction is $13,850 for single filers and $27,700 for married couples filing jointly. If your deductions for things like mortgage interest, charitable contributions, or medical expenses don't add up to more than the standard deduction, taking it is often the smartest route. This option also saves time, since you won't have to itemize every deduction.
However, if you’ve had a major life event—like buying a home, high medical expenses, or significant charitable giving—you may want to reconsider and check if itemizing would save you more money.
Understanding when to use the standard deduction can make tax season smoother and help you maximize your savings.