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As most individuals and tax professionals know by now, the standard deduction almost doubled under the Tax Cuts and Jobs Act (TCJA) for the single, married filing jointly (MFJ), married filing separately (MFS), head of household (HOH) and surviving spouse filing statuses. For the 2024 tax year under the TCJA, the standard deduction dollar amounts increased due to inflation to $29,200 for MFJ and surviving spouses; $21,900 for HOH; $14,600 for singles and MFS; $1,550 for MFJ, over 65 or blind; and $1,950 for singles and HOH, over 65 or blind.
The TCJA temporarily increases the basic standard deduction for individuals across all filing statuses. This provision began in 2018 and continues through 2025, when this provision sunsets. For taxpayers who do not itemize, this increase to the standard deduction results in a decrease of taxable income in most situations. Let’s look at two examples to see how the new tax act lowers the taxpayer’s tax liability.
Example 1.
In 2024, Carly, a single taxpayer, qualifies for an additional deduction because she is 70 years old. Her standard deduction for 2024 is $16,550 ($14,600, the standard deduction for 2024, plus $1950, the 2024 additional standard deduction for the singles who are over 65 or blind).
Example 2.
In 2024, Nicole and her spouse are joint filers. Both qualify for an additional standard deduction because they are both over 65. Their Form 1040 standard deduction is $32,300 ($29,200, the 2024 standard deduction for joint filers, plus 2 x $1,550, the 2024 additional standard deduction for married persons who are over 65 or blind).
The above examples reflect the benefit of the new standard deduction. Millions of taxpayers won’t be itemizing this year to reduce their Federal income-tax bill. They’ll claim the standard deduction instead.
Barry Lisak is an IRS enrolled agent specializing in personal and small business taxes for 30 years. Any questions can be directed to him at 516-829-7283, or mrbarrytax@aol.com.
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