Standard deductions for 2022

Standard deduction in tax

The standard deduction is a fixed dollar amount The Internal Revenue Service (IRS) allows taxpayers to deduct from their taxable income ( adjusted gross income or just AGI) hence reducing the overall tax bill.

• It ensures that all taxpayers have at least some income that is not subject to federal income (and importantly that only households with income above certain thresholds are subject to income tax).
• IRS allows taxpayers to make this claim, and may also allow a taxpayer to take additional deductions depending on their filing status (i.e. marital and household status), income, age (above 65), and whether the individual is blind.
• IRS typically makes yearly upward inflation adjustments on the deduction.
• If another taxpayer claims you as a dependent on their tax return, you only get a smaller claim(for the tax year 2022, the claim is limited to the greater of $1,150 or the earned income plus $400 limited to the individual’s basic standard deduction).
• Many States also allow standard deductions on the state income tax return.

How do standard deductions work

Standard deductions vs itemized

When filing taxes, a taxpayer has two options for claiming deductions, they can either;

• Choose to itemize deductions (subtract certain expenses using Schedule A of Form 1040 and be ready to provide evidence/records upon request), or
• Take the standard deduction (automatically subtract a flat amount set by IRS, no questions asked or evidence/records to be provided) but not both options.

The difference between the two is very clear

• Itemized deductions require a taxpayer to manually calculations his qualifying deductions (mortgage interest, student loan interest, some business-related costs, medical expenses), while
• The standard deduction is a specific or standard number determined solely by your age and filing status.

There are five standard deductions to be utilized in the tax year 2022;

• Standard deduction head of household

Taxpayers who are filing as “head of household” (it’s for unmarried individuals with dependents) can claim a standard deduction of $19,400($18,800 in 2021).

This category offers wider tax brackets, a significantly larger standard deduction, and faster eligibility for other write-offs.

• Standard deduction for single filers

Taxpayers who file returns as “single” (it’s for Unmarried individuals with no dependents) can claim a $12,950($12,550 in 2021)

• Standard deduction married couple

How much is the standard deduction for married filing jointly

Married taxpayers who chose to file jointly can claim $25,900($25,100 in 2021)

Why should married couples file separately

Married taxpayers Filing separately can claim $12,950($12,550 in 2021)

• Qualifying widow(er)

A surviving spouse is eligible to claim $25,900($25,100 in 2021)

All of the above statuses have separate qualifying rules, standard deductions amounts, tax rates, and credit and deduction eligibility.

Standard deduction for over 65

The federal income tax systems are generous on the deduction for Individuals who are either blind (partially blind as determined by a certified by our ophthalmologist or optometrist), at least 65 years (you are considered to be 65 on the day before your 65th birthday) or both. They are allowed to claim a larger standard deduction.

For 2022, the additional standard deduction amounts for taxpayers who are at least blind or over 65 years of age were:

• Head of household taxpayers – $1,750 ($1,700 in 2021)
• Single filer taxpayer– $1,750 ($1,700 in 2021)
• Married taxpayers – $1,400 ($1,350 in 2021)
• Qualifying Widow(er) – $1,400 ($1,350 in 2021)

Please note that The deduction for taxpayers who are at least blind and over 65 years is double:

• Head of household taxpayers – $3,500 ($3,400 in 2021)
• Single filer taxpayer– $3,500 ($3,400 in 2021)
• Married taxpayers – $2,800 ($2,700 in 2021)
• Qualifying Widow(er) – $2,800 ($2,700 in 2021)

Frequently Asked Questions (FAQs)

2021 standard deduction

• Married Filing Jointly– $25,100
• Qualifying Widow(er) – $25,100
• Head of Household – $18,800
• Single– $12,550
• Married Filing Separately – $12,550
• Married Filing jointly – $25,100

Taxpayers who are 65 and Older or are Blind

The 2021 deductions are;

• Head of household taxpayers – $1,700
• Single filer taxpayer– $1,700
• Married taxpayers – $1,350
• Qualifying Widow(er) – $1,350

Taxpayers who are 65 and Older and are Blind

The 2021 deductions are;

• Head of household taxpayers – $3,400
• Single filer taxpayer– $3,400
• Married taxpayers – $2,700
• Qualifying Widow(er) – $2,700

Bottom Line

Generally, the rule of thumb is;

• Take the standard deduction if the claim is greater than the sum of the summary of your qualified itemized deductions. Always bear in mind that this claim will depend on factors like taxpayers’ age, income, and filing status.
• The standard deduction is preferable if you are poor at tracking your records or keeping receipts. This is even more apparent with the 2017 Tax Cuts and Jobs Act which dramatically increased the standard deduction while reducing some of the itemized deductions available to a taxpayer.

Certain situations may call for a taxpayer to itemize deductions even its way less than the standard deduction. This happens in instances where the taxpayer stands to pay less overall taxes between the federal and state taxes (states like Michigan or Massachusetts do not allow the practice).

The standard deduction should be available to any taxpayer who does not itemize, with a few exceptions. This deduction is not available to a taxpayer if:

• If filing as ‘‘married and filing separately’’, but then one of the spouses opts to itemize their deductions.
• When filing as ‘‘married and filing jointly’’ but one of the spouses is a nonresident or dual-status alien at any time during the tax year
• They File a return for less than 12 months because they are changing their annual accounting period
• Filing as a trust, a common trust fund, a partnership, or an estate