Here’s how much increases to the standard deduction could save you on taxes
(NEXSTAR) — Did you know? Standard deductions for your 2022 and 2023 taxes are higher after the Internal Revenue Service raised them to account for inflation. That means the dollar amount taxpayers can hang on to will increase for many.
The standard deduction is a flat amount filers can apply to their taxes instead of the more complicated itemized deductions (subtracting amounts from purchase receipts) for things like medical expenses and certain types of loan interest.
Standard deductions depend on how you file and there are some limits, as Forbes explains. For instance, you can’t claim standard deductions if you’re married, filing separately, and your spouse files itemized deductions. Additionally, your standard deduction options are limited if you can be claimed as someone else’s dependent.
And don’t get confused: You’ll file 2022 year taxes this coming spring. The 2023 filing year standard deduction amounts will apply to taxes you’ll file in spring 2024.
|Filing status||Standard deduction 2022||Standard deduction 2023|
|Single/married, filing seperately||$12,950||$13,850|
|Head of household||$19,400||$20,800|
In addition to these deductions, filers ages 65 and older and/or those who are blind can apply for an additional standard deduction. Married filers who apply the additional standard deduction receive the same amounts regardless of whether they filed with or without their spouse.
These amounts are also changing between 2022 and 2023.
|Filing status||Additional standard deduction 2022||Additional standard deduction 2023|
|Single/HOH (age 65+ or blind)||$1,750||$1,850|
|Single or HOH (age 65+ and blind)||$3,500||$3,700|
|Married (age 65+ or blind)||$1,400||$1,500|
|Married (age 65+ and blind)||$2,800||$3,000|
Filers should also note there are some major changes to tax deductions for tax year 2022 (to be filed in spring 2023) as many expanded benefits of the American Rescue Plan go away.
For further information on 2022 filing year credits and deductions, visit the Internal Revenue Service. The deadline to file 2022 taxes will be Tuesday, April 18, 2023.