Standard Deduction by Filing Status

The standard deduction is one of the most fundamental concepts in individual taxation. It represents a fixed dollar amount that taxpayers can subtract from their Adjusted Gross Income (AGI) to reduce their taxable income. For the vast majority of taxpayers (approximately 90%), claiming the standard deduction is simpler and more beneficial than itemizing deductions on Schedule A.

2024 Standard Deduction Amounts

The IRS adjusts standard deduction amounts annually for inflation. For tax year 2024 (the year tested on EA exams from May 2025 through February 2026), the basic standard deduction amounts are:

Key Observations:

• MFJ and QSS receive the same amount—exactly double the Single amount
• MFS receives the same amount as Single (not half of MFJ)
• HOH receives an amount between Single and MFJ, reflecting the additional expenses of maintaining a household with dependents

Additional Standard Deduction for Age and Blindness

Taxpayers who are age 65 or older or legally blind qualify for an additional standard deduction amount. This is added to the basic amount above.

Important Rule: For tax purposes, you are considered age 65 on the day before your 65th birthday. For 2024 returns, a taxpayer is considered 65 if they were born before January 2, 1960.

Definition of Legal Blindness: A taxpayer is legally blind if:

• Eyesight is no better than 20/200 in the better eye with corrective lenses, OR
• Field of vision is 20 degrees or less

A statement from an ophthalmologist or optometrist certifying the condition is required.

Calculating Total Standard Deduction: Examples

Example 1: Single Taxpayer, Age 67

• Basic standard deduction: $14,600
• Additional for age 65+: $1,950
• Total: $16,550

Example 2: Married Filing Jointly, Both Age 66, Wife is Legally Blind

• Basic standard deduction: $29,200
• Additional for husband (age 65+): $1,550
• Additional for wife (age 65+): $1,550
• Additional for wife (blind): $1,550
• Total: $33,850

Example 3: Head of Household, Age 70, Legally Blind

• Basic standard deduction: $21,900
• Additional for age 65+: $1,950
• Additional for blindness: $1,950
• Total: $25,800

Dependents' Standard Deduction Limitation

If a taxpayer can be claimed as a dependent on someone else's return, their standard deduction is limited. The limitation applies even if the other person doesn't actually claim them.

The Formula: A dependent's standard deduction is the GREATER OF:

1. $1,300 (the minimum), OR
2. Earned income + $450

However, the total cannot exceed the regular standard deduction for the dependent's filing status.

*Capped at the regular Single standard deduction of $14,600

Example: Sarah, age 17, is claimed as a dependent by her parents. She earned $4,200 from a part-time job and had $800 in interest income from savings bonds.

• Earned income + $450 = $4,200 + $450 = $4,650
• Greater of $1,300 or $4,650 = $4,650
• $4,650 is less than $14,600, so Sarah's standard deduction is $4,650

Taxpayers Who CANNOT Claim the Standard Deduction

Certain taxpayers are not allowed to claim the standard deduction and must itemize (even if itemized deductions are less than the standard deduction):

1. Married Filing Separately (MFS) when spouse itemizes: If one spouse itemizes deductions, the other spouse must also itemize. This prevents couples from "splitting" the benefit unfairly.

2. Nonresident aliens: Generally cannot claim the standard deduction. Exception: Nonresident aliens married to U.S. citizens/residents who elect to be treated as residents may claim it.

3. Dual-status aliens: Individuals who were both nonresident and resident aliens during the year generally cannot claim the standard deduction for the year.

4. Short tax year filers: Anyone filing a return for a period of less than 12 months due to a change in accounting period.

5. Estates and trusts: These entities cannot claim the standard deduction (though they receive an income distribution deduction instead).

6. Partnerships: Cannot claim the standard deduction (though individual partners can on their personal returns).

Standard Deduction vs. Itemizing: The Decision

Taxpayers should claim the larger of their standard deduction or total itemized deductions. Common itemized deductions (Schedule A) include:

• Medical expenses exceeding 7.5% of AGI
• State and local taxes (SALT) - limited to $10,000
• Mortgage interest on qualified residence debt
• Charitable contributions
• Casualty and theft losses (only from federally declared disasters)

Strategy: Most taxpayers (about 90%) benefit more from the standard deduction, especially since the 2017 Tax Cuts and Jobs Act nearly doubled standard deduction amounts and limited itemized deductions like SALT.

When Standard Deduction Is Most Beneficial

The standard deduction typically provides greater benefit when:

• Taxpayer owns no home (no mortgage interest)
• State/local taxes are low (standard deduction exceeds SALT cap + other items)
• Taxpayer has few charitable contributions
• Taxpayer has minimal medical expenses

EA Exam Tips

High-Frequency Topics:

• Memorize the 2024 standard deduction amounts by filing status
• Know the additional amounts for age 65+ and blindness
• Understand the dependent limitation formula: Greater of $1,300 OR earned income + $450
• Remember the "must itemize" situations, especially MFS when spouse itemizes

Common Exam Traps:

• Don't confuse Single ($14,600) with MFS ($14,600)—they're the same amount but different situations
• Remember that QSS gets the same amount as MFJ ($29,200)
• The "age 65 on the day before" rule—born before January 2, 1960 for 2024
• Additional amounts differ: $1,950 for single/HOH vs. $1,550 for married filers

Calculation Practice: The EA exam often presents scenarios requiring you to calculate the total standard deduction including additional amounts for multiple conditions. Practice adding the correct additional amounts based on marital status.