The Standard Deduction: What It Is and How It Works

What Is the Standard Deduction?

The standard deduction is a fixed dollar amount the IRS allows you to subtract from your Adjusted Gross Income (AGI) before calculating your federal income tax. You do not need to provide any receipts or documentation to claim it — it is automatic.

The standard deduction effectively ensures that a baseline amount of your income is free from federal income tax. It increases each year for inflation.

2025 Standard Deduction Amounts

Additional Standard Deduction for Age 65+ and Blindness (2025)

Taxpayers who are age 65 or older (or legally blind) receive an additional standard deduction on top of the base amount:

• Single or Head of Household (65+ or blind): +$2,000 additional
• Married Filing Jointly or QSS (per eligible spouse): +$1,600 additional

A taxpayer who is both 65+ AND blind receives the additional amount twice.

2025 Senior Bonus Deduction (New)

The One Big Beautiful Bill Act of 2025 created an additional income-based deduction for taxpayers age 65 and older:

• Up to $6,000 per filer (or $12,000 for married couples filing jointly)
• Income limits apply — the deduction phases out at higher income levels
• This is in addition to the existing standard deduction and the age 65+ additional deduction

Verify the exact parameters and income phase-out thresholds with a tax professional or directly at irs.gov.

When Is the Standard Deduction Better?

Take the standard deduction when the total of your itemizable expenses is less than your standard deduction for your filing status. This is the case for approximately 90% of U.S. taxpayers.

The standard deduction is simpler because:

• No need to track or document individual expenses
• No risk of audit over specific deductions
• File a simpler return without Schedule A

When Should You Itemize Instead?

You should itemize deductions (using Schedule A) when your qualifying expenses add up to more than your standard deduction. Common situations where itemizing is beneficial:

• You paid significant mortgage interest on a home loan
• You have large state and local tax payments (SALT)
• You made substantial charitable contributions
• You had very high unreimbursed medical expenses (over 7.5% of AGI)

Learn more: Itemized Deductions Guide

Who Cannot Take the Standard Deduction?

In certain situations, you may not be able to claim the standard deduction:

• If you are married filing separately and your spouse itemizes, you must also itemize
• If you are a nonresident alien (though dual-status aliens may take a partial deduction)
• For an estate, trust, partnership, or corporation
• If you filed a return covering less than 12 months due to an accounting period change

Practical Example