2022 TAX WRITE OFFS PLUS
Her total standard deduction amount will be $14,700.įor 2023, assuming no changes, Ellen’s standard deduction would be $15,700: the usual 2023 standard deduction of $13,850 available to single filers, plus one additional standard deduction of $1,850 for those over 65. For 2022, she’ll get the regular standard deduction of $12,950, plus one additional standard deduction of $1,750 for being a single filer over age 65. That’s the 2023 regular standard deduction of $27,700 for married taxpayers filing joint returns, plus three additional standard deductions at $1,500 apiece.Įxample 2: Ellen is single, over the age of 65, and not blind. On their 2023 return, assuming there are no changes to their marital or vision status, Jim and Susan’s standard deduction would be $32,200. They get one more $1,400 standard deduction because Susan is blind. They also both get an additional standard deduction amount of $1,400 per person for being over 65. Susan is blind Jim is not.įor 2022, they’ll get the regular standard deduction of $25,900 for a married couple filing jointly. Let’s run through a couple of examples of how the additional standard deduction can work.Įxample 1: Jim and Susan are a married couple who file a joint return. IRS preliminary instructions for the 2022 tax year Form 1040 include a table to help you calculate the standard deduction available to you based on when you (and your spouse, if applicable) were born and whether you and your spouse are considered legally blind. Navigating the additional standard deduction amounts can be confusing. Married Filing Jointly or Married Filing Separately Eliminating unreimbursed employee expensesĪs a result, fewer people benefit from itemizing-a situation that’s likely to remain until those provisions of the 2017 law expire on December 31, 2025, or Congress makes changes sooner.Īdditional Standard Deduction 2022 (Per Person)Īdditional Standard Deduction 2023 (Per Person).Limiting the home mortgage interest deduction to interest paid on up to $750,000 of mortgage debt (up to $375,000 if married filing separately).
Capping the deduction for state and local taxes (SALT) at $10,000.It also eliminated or restricted several itemized deductions, including: But the law temporarily increased the standard deduction-nearly doubling it for all filing statuses. Before then-President Donald Trump signed the 2017 tax law, roughly 30% of taxpayers itemized deductions. However, an estimated 90% of taxpayers choose to claim the standard deduction. Can Itemizing Save You Money?įor some people, itemizing reduces their tax bill more than claiming the standard deduction would. Same as with the standard deduction, itemizing reduces your taxable income. You must track the expenses, keep receipts or other documentation proving you spent the money for deductible purposes, and-if you’re doing taxes using paper and pen-fill out additional tax forms. But itemizing can be much more of a hassle than taking the standard deduction. You have a wide range of expenses you can claim as itemized deductions, including out-of-pocket medical expenses, state and local taxes, home mortgage interest and charitable contributions. You file as an estate or trust, common trust fund or partnership.You file a return for less than 12 months due to a change in your accounting period.You were what the IRS calls a “nonresident alien” or a “dual-status alien” during the tax year.You are married and file separately from a spouse who itemizes deductions.You cannot claim the standard deduction if: Generally, the standard deduction is available to anyone who doesn’t itemize, although there are a few exceptions. When Can You Claim the Standard Deduction? Here’s what that means: If you earned $75,000 in 2022 and file as a single taxpayer, taking the standard deduction of $12,950 will reduce your taxable income to $62,050. You simply claim a flat dollar amount determined by the IRS. The standard deduction is the simplest way to reduce your taxable income on your tax return. Married Filing Jointly & Surviving Spouses
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