The IRS has announced the updated standard deduction amounts for the 2025 tax year, providing taxpayers with a larger deduction to reduce taxable income.
What is the standard deduction?
The standard deduction is a fixed dollar amount that reduces your taxable income, simplifying tax filing for many Americans. Instead of itemizing expenses, taxpayers can opt for this predetermined deduction to lower their tax obligations. The standard deduction amount varies based on filing status and is adjusted annually to reflect inflation.
For 2025, the IRS increased the standard deduction amounts, though the rise is less pronounced compared to previous years.
2025 Standard deduction amounts
Updated amounts by filing status
- Single or married filing Separately: $15,000 (up from $14,600 in 2024).
- Married filing jointly or surviving Spouses: $30,000 (up from $29,200 in 2024).
- Head of household: $22,500 (up from $21,900 in 2024).
For married couples filing jointly, this adjustment allows a $30,000 deduction, helping to shield more income from federal taxation. The IRS emphasized that these increases are part of annual inflation adjustments aimed at ensuring taxpayers are not penalized by rising costs.
Additional deductions for seniors and the blind
Taxpayers aged 65 or older, or those who are blind, qualify for an additional deduction. For 2025:
- Single or head of household: An extra $2,000 for each condition (age or blindness).
- Married filing jointly: An extra $1,600 per eligible individual for each condition.
This adjustment is particularly beneficial for older couples filing jointly, potentially adding up to $6,400 if both spouses qualify.
Standard deduction for dependents
If you’re filing a tax return but are still being claimed as a dependent by someone else, your standard deduction depends on your earned income.
- For the 2024 tax year, the standard deduction for dependents is $1,300, or earned income plus $450. If you take the second route, note that the final number can not exceed the standard deduction for your tax filing status.
- For the 2025 tax year, you can either take a flat $1,350, or however much your earned income was, plus $450, not to exceed the maximum standard deduction amount for that tax filing status.
When can you not take the standard deduction?
The standard deduction is a welcome tax break for most — but there are a handful of situations where you may not be qualified to take it.
- You are married filing separately, and your partner chooses to itemize. You must also itemize.
- You are filing a return as a trust, an estate or a partnership.
- Your return covers a period of less than a year because of accounting period changes.
- You are considered a “nonresident alien” or “dual-status alien” of the US.
Calculating your deduction
For example, a married couple filing jointly with an adjusted gross income (AGI) of $100,000 in 2025 could subtract the $30,000 standard deduction, reducing their taxable income to $70,000 before other credits or deductions are applied.
Itemized deductions vs. standard deduction
While the standard deduction simplifies tax filing, some taxpayers may benefit from itemizing deductions. Itemizing is typically advantageous for those with notable expenses in areas like:
- Mortgage interest
- Medical costs exceeding the IRS threshold
- Charitable contributions
- State and local taxes
It’s advisable to compare the total of your itemized deductions against the standard deduction to determine which option saves more on taxes.
Limitations on claiming the standard deduction
Certain taxpayers cannot claim the standard deduction, including:
- Married individuals filing separately where one spouse itemizes.
- Nonresident aliens (with some exceptions).
- Estates, trusts, or partnerships.
It’s important to consult IRS guidelines or a tax professional if you fall into these categories.
Maximizing your tax benefits in 2025
The increased standard deduction provides a straightforward way to reduce taxable income. However, those with higher itemizable expenses should evaluate both options. Tax preparation software or professional advisors can help run scenarios for the best outcome.
