• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

What Is Standard Deduction?

What Is Standard Deduction?

Under the US Tax Law, a fixed amount allowed by the IRS to be deducted from gross income for the purpose of Income tax is called Standard Deduction. It is a type of Allowable deductions.

The amount of Standard deduction is decided by the Internal Revenue Services (IRS). This amount varies from time to time according to the status of the taxpayer.

The amount of Standard Deduction in 2017 for Single Filers was $ 6,350, for Married filing jointly was $ 6.350, for Married filing jointly was $ 12,700 and for Head of House Hold it was $ 9,350.

These amounts are now changed for the year 2018.

Standard Deduction Amounts for the year 2018

For the year 2018, the IRS has announced the amount for standard deductions. They are as follows:

Single Filers – $ 6,500.

Married Filing Separately – $ 6,500.

Married filing jointly – $ 13,000.

Head of House Hold – $ 9,550.

Source: www.irs.gov

Standard Deduction

Who cannot claim Standard Deduction?

Every taxpayer doesn’t qualify for standard deductions.

Single filers or married filing jointly cannot claim standard deductions who doesn’t pass the green card test or the substantial presence test during the tax year.

Similarly, married filing separately whose spouse has itemized his/her deductions are not eligible to claim the standard deductions.

An estate or trust is also not eligible for standard deductions.

When to Choose Standard Deduction instead of Itemized Deduction?

Choosing standard deductions is an easy option, but sometimes it might cost you money.

It is recommended that you take time to calculate and compare the amounts of the standard and itemized deductions.

If you find that your itemized deductions are less than standard deduction amount, then you must choose the standard deductions.

But, if your itemized deductions are more than the standard deduction amount then it is not feasible to choose this option.

We have made many free and downloadable templates which can be helpful to you for tax purposes. Some of them are listed below:

  1. Adjusted Gross Income Calculator
  2. Traditional IRA Calculator
  3. Roth IRA Calculator
  4. Income Statement Projection

We thank our readers for liking, sharing and following us on different social media platforms.

If you have any queries please share in the comment section below. I will be more than happy to assist you.

Filed Under: Tax Glossary

You are Here: Home / Accounting Glossary / What Is Standard Deduction?

About Shabbir Bhimani

I have worked in Excel and like to share functional excel templates at ExcelDataPro.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ExcelDataPro

Free Excel Pro Templates

  • Glossary
    • Accounting Glossary
    • HR & Payroll Glossary
    • Tax Glossary
  • Templates
    • Accounting
      • Financial Analysis
      • Financial Statement
    • Educational
    • Taxation
      • Federal Income Tax
      • GST
      • UAE VAT
      • UK VAT
    • Human Resources
      • HR & Payroll
      • HR Metrics
    • School Management
    • Social Media
    • Sales-Marketing
    • Personal Finance
    • Other
      • Health & Fitness
  • Functions
  • Calculators
  • Home
  • Contact
  • Privacy
  • Terms

© ExcelDataPro 2025. Content Licensed Under Creative Commons with Attribution Required

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT