Updates to the Standard Deduction for 2024

SHARE

The IRS recently announced several important inflation-related updates for the 2024 tax year that will be applied to returns filed in 2025. Among those changes was an increase to the standard deduction.

What Is the Standard Deduction?

The standard deduction is a set amount of money that you can deduct from your taxable income, regardless of whether you actually itemize your deductions.

What Are the New Standard Deduction Amounts for 2024?

The IRS has increased the standard deduction amounts for all filing statuses in 2024 to adjust for inflation. The new amounts are as follows:

• Single filers and married filing separately: $14,600 (up from $13,850 in 2023)

• Married filing jointly: $29,200 (up from $27,700 in 2023)

• Heads of household: $21,900 (up from $20,800 in 2023)

Important Things to Remember

The new amounts apply to your tax return that you will file in 2025 for the tax year 2024. While these amounts are shown relative to 2023, it’s important to note that the tax brackets were also adjusted for the upcoming year. If you were bumped into a different tax bracket for 2024, the amount you’re saving by taking the standard deduction in 2024 will also be affected.

Have questions about the standard deduction or how these changes impact your unique tax situation? Our tax experts are here to help. Contact Us.