What is the standard deduction amount for 2025?

by | May 9, 2025 | Deductions, Individual Taxes

Here’s what HIVE AI had to say about “What is the standard deduction amount for 2025?”:

Standard Deduction Amounts for 2025

For taxable years beginning in 2025, the standard deduction amounts under § 63(c)(2) are as follows:

Filing StatusStandard Deduction
Married Individuals Filing Joint Returns and Surviving Spouses$30,000
Heads of Households$22,500
Unmarried Individuals (other than Surviving Spouses and Heads of Households)$15,000
Married Individuals Filing Separate Returns$15,000

These amounts represent an increase from the 2024 standard deduction amounts. For single taxpayers and married individuals filing separately, the standard deduction rises to $15,000 for 2025, which is a $400 increase from 2024. For married couples filing jointly, the standard deduction rises to $30,000, an increase of $800 from tax year 2024. For heads of households, the standard deduction will be $22,500 for tax year 2025, an increase of $600 from the amount for tax year 2024. IRS Newsroom – IR-2024-273 – IRS releases tax inflation adjustments for tax year 2025

Additional Standard Deduction for Age and Blindness

For taxpayers who are aged or blind, there are additional standard deduction amounts available for the 2025 tax year:

  • The additional standard deduction amount for the aged or the blind is $1,600.
  • The additional standard deduction amount is increased to $2,000 if the individual is also unmarried and not a surviving spouse. Rev. Proc. 2024-40

Your standard deduction is increased by the following amounts if, at the end of 2025, you are:

Standard Deduction for Dependents

For taxable years beginning in 2025, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of:

  • $1,350, or
  • The sum of $450 and the individual’s earned income (up to the standard deduction amount). Rev. Proc. 2024-40

If you can be claimed as a dependent on another person’s 2025 return, your standard deduction is the greater of:

Historical Context

It’s worth noting that for tax years 2018-2025, there is no longer an overall limitation on itemized deductions, which was previously in place before the Tax Cuts and Jobs Act. IRS IRM 21.6.4 Tax Computation / Accounting Period Changes

Additionally, for taxable years 2018 through 2025, miscellaneous itemized deductions have been suspended under section 67(g). This means that certain employee expense deductions that would normally be classified as miscellaneous itemized deductions are not available during this period. Dawson U.S. Tax Court Opinions: Jorge Luis Calienes & Tamara S. Calienes

These standard deduction amounts will apply to tax returns filed in 2026 for the 2025 tax year. Remember that you can either take the standard deduction or itemize your deductions, but not both. You should choose the option that results in the lower tax liability.

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Question : How do I choose between standard deduction and itemized deductions?

Here’s what HIVE AI had to say about “How do I choose between standard deduction and itemized deductions?”:

Choosing Between Standard Deduction and Itemized Deductions

When deciding between taking the standard deduction or itemizing your deductions, you should choose the option that results in the lower tax liability. Here’s a comprehensive guide to help you make this important decision:

Basic Comparison Approach

Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. If you have a choice, you should use the method that gives you the lower tax. IRS – Publication 501: Dependents, Standard Deduction, and Filing Information The decision comes down to a simple mathematical comparison:

You should itemize deductions on Schedule A (Form 1040) if the total amount of your allowable itemized deductions is greater than your standard deduction or if you must itemize deductions because you can’t use the standard deduction. IRS.gov Tax Topics

Understanding the Standard Deduction

The standard deduction is a dollar amount that reduces your taxable income. It is a benefit that eliminates the need for many taxpayers to itemize actual deductions, such as medical expenses, charitable contributions, and taxes, on Schedule A (Form 1040). IRS – Publication 501: Dependents, Standard Deduction, and Filing Information

The standard deduction is higher for taxpayers who: • Are 65 or older, or • Are blind. IRS – Publication 501: Dependents, Standard Deduction, and Filing Information

When You Must Itemize

In some situations, you don’t have a choice and must itemize:

Your standard deduction is zero and you should itemize any deductions you have if:

A taxpayer who files as married filing separately must itemize deductions on Schedule A if their spouse itemizes deductions. They cannot claim the standard deduction. IRS IRM 21.6.4 Tax Computation / Accounting Period Changes

When You Might Want to Itemize

You may also want to itemize deductions if your standard deduction is limited because another taxpayer claims you as a dependent. IRS.gov Tax Topics

What Expenses Can Be Itemized

Itemized deductions, subject to certain dollar limitations, include amounts you paid, during the taxable year, for state and local income or sales taxes, real property taxes, personal property taxes, mortgage interest, disaster losses, gifts to charities, and medical and dental expenses. IRS.gov Tax Topics

Common itemized deductions include:

If you itemize, you can deduct these expenses:

Schedule A includes the following items: • Medical and Dental Expenses • Taxes You Paid • Interest You Paid • Gifts to Charity (Contributions) • Other Itemized Deductions IRS – Publication 5838: VITA/TCE Intake/Interview and Quality Review Handbook Stakeholder Partnerships, Education, & Communication (SPEC)

Deductions Available Regardless of Method

Some deductions are available whether you take the standard deduction or itemize:

You can deduct these expenses whether you take the standard deduction or itemize:

  • Alimony payments
  • Business use of your car
  • Business use of your home
  • Money you put in an IRA
  • Money you put in health savings accounts
  • Penalties on early withdrawals from savings
  • Student loan interest
  • Teacher expenses
  • For some military, government, self-employed and people with disabilities: work-related education expenses
  • For military servicemembers: moving expenses IRS – Credits and deductions for individuals

Limitations on Itemized Deductions

For tax years 2018 through 2025, there are some important limitations to be aware of:

  • State and local tax deductions are limited to $10,000 ($5,000 for married filing separately).
  • Miscellaneous itemized deductions subject to the 2% AGI floor have been suspended.

In 2018, Congress enacted section 67(g), suspending miscellaneous itemized deductions for taxable years 2018 through 2025. Employee expense deductions would be miscellaneous itemized deductions, and are therefore suspended under section 67(g). Dawson U.S. Tax Court Opinions: Jorge Luis Calienes & Tamara S. Calienes

How to Make Your Decision

To decide between standard and itemized deductions:

  • Calculate your potential itemized deductions: Add up all your qualifying expenses for the tax year.
  • Compare to your standard deduction: Look up the standard deduction amount for your filing status.
  • Choose the larger amount: Select whichever gives you the greater deduction.

Figure your tax both ways—claiming the credit and claiming the deduction. Then fill out your return the way that benefits you most. IRS – Foreign Tax Credit – Choosing to take credit or deduction

Practical Example

For example, if your itemized deductions would be $11,750, but the standard deduction is $12,000, you would benefit more by taking the standard deduction. The difference between your potential itemized deductions ($11,750) and the standard deduction ($12,000) is $250, so you would save more in taxes by taking the standard deduction. Rev. Rul. 2019-11

Documentation Requirements

If you choose to itemize, be prepared to substantiate your deductions:

In connection with claims for deductions, you shall furnish the name and address of each person to whom payment for expenses was made and the amount and date of the payment thereof in each case. Tresuary Reg. 1.213-1

As observed in countless opinions, deductions are a matter of legislative grace, and the taxpayer bears the burden of proof to establish entitlement to any claimed deduction. This burden requires the taxpayer to substantiate deductions claimed by keeping and producing adequate records that enable the Commissioner to determine the taxpayer’s correct tax liability. A taxpayer claiming a deduction on a Federal income tax return must demonstrate that the deduction is allowable pursuant to some statutory provision and must further substantiate that the expense to which the deduction relates has been paid or incurred. Dawson U.S. Tax Court Opinions: Doris Gaines & George Gaines Dawson U.S. Tax Court Opinions: Doris Gaines & George Gaines

Changing Your Election

Under regulations prescribed by the Secretary, a change of election with respect to itemized deductions for any taxable year may be made after the filing of the return for such year. If the spouse of the taxpayer filed a separate return for any taxable year corresponding to the taxable year of the taxpayer, the change shall not be allowed unless, in accordance with such regulations— IRC § 63(e)

You can change your choice for each year’s taxes. IRS – Foreign Tax Credit – Choosing to take credit or deduction

Special Considerations

Foreign Tax Credit vs. Deduction

You can choose whether to take the amount of any qualified foreign taxes paid or accrued during the year as a foreign tax credit or as an itemized deduction. IRS – Foreign Tax Credit – Choosing to take credit or deduction

Nonresident Aliens

The standard deduction shall not be allowed in computing the taxable income of a nonresident alien individual. Tresuary Reg. 1.873-1

Conclusion

The choice between standard deduction and itemized deductions is an important one that can significantly impact your tax liability. By carefully calculating both options and choosing the one that provides the greater benefit, you can minimize your tax burden.

Remember that tax laws change periodically, so it’s important to stay informed about current deduction amounts and limitations. For the most accurate and up-to-date information, consult IRS publications or work with a qualified tax professional who can provide guidance specific to your situation.

For more detailed information, refer to: Publication 17, Your Federal Income Tax for Individuals or the Instructions for Form 1040 (and Form 1040-SR). You may also refer to Publication 501, Dependents, Standard Deduction, and Filing Information. IRS.gov Tax Topics

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