What is the standard deduction amount for 2022 and 2021? The IRS updated the number and it’s a little bit higher this year.
When filing income taxes, taxpayers can choose to either itemize tax deductions, or take the standard tax deduction amount. The IRS adjusts how much the standard deduction is each year based upon inflation. The 2022 standard tax deduction amount is a bit higher than the 2021 deduction amount for most taxpayers because of limited inflation.
Remember, even though you will be filling your taxes in early 2022, those tax returns are for the year 2021, so use the 2021 standard deduction amount on taxes you work on in the first quarter of 2022. When you file your taxes in early 2022, those taxes are for your income and deductions in 2021.
2021 Standard Tax Deduction Amount
For use when filing your taxes in early 2022.
As usual, there are different deduction values depending upon how you file your income taxes.
- Single and Married Filing Separately: $12,550
- Married Filing Jointly: $25,100
- Head of Household: $18,800
The 2021 annual gift exclusion is $15,000.
2022 Standard Deduction Amounts
For use when filing your taxes in early 2023.
If you are curious, the 2022 standard deduction amount has been released by the IRS. These numbers will be used when filing your 2022 taxes in early 2023. These are NOT the deduction numbers used while filing 2021 taxes before April 15, 2022.
Single and Married Filing Separately 2022: $12,950 up $400 from 2021
Married Filing Jointly 2022: $25,900 up $800 from 2021
Head of Household 2022: $19,400 up $600 from 2021
The annual gift exclusion increases to $16,000 for 2022.
2022 Standard Deduction Over 65 Chart
Also, the 2022 standard deduction for the blind chart
The chart refers to the checkboxes on Form 1040 in the Standard Deduction section with the subheading Age/Blindness. You get one check mark for being born before January 2, 1957, giving you the standard deduction 2022 over 65 amount. You get another checkmark if you are blind. If you are married filing jointly, your spouse also has the same checkmarks. So, if you and your spouse are over 65, you get two boxes checked. If both you and your spouse are over 65 and one of you is blind, then you have three boxes checked, and so on.
Itemizing isn’t really what it used to be under the new tax law.
Instead, taxpayers will need to file one, or more, of seven additional schedules that go along with Form 1040.
For example, Educator expenses, Health Savings Accounts, moving expenses, IRA deductions and Student Loan deductions are all found on Schedule 1. You’ll need Schedule 3 for Child and Dependent care expenses. Schedule 4 has both Self-Employment tax, and where you’ll need to report taxes if you have a nanny.
All reputable tax software calculates how to still make your deductions (if they add up to enough) and will fill in the appropriate schedules for you. They continue to improve Credit Karma free tax returns. Other tax preparation software includes TaxCut, TaxAct, and TurboTax. — Now is the time to start watching for tax software specials. They always throw out good deals in the holiday shopping season that disappear come the new year.
If doing taxes by hand, then, find the big deductions first, and see if they provide anywhere near the amount necessary to bother filling out the various forms and schedules.
Other large deductions include medical expenses, but only if they exceed 9 percent of your income, and property taxes.
Deductions Without Itemizing
Some deductions are available without itemizing, such as the child tax credit.
Other common tax deductions will require additional forms beyond the basic 1040: educator expenses, health savings account deduction, moving expenses, IRA deductions, student loan interest, and tuition and fees.
Standard Deduction with Small Business
It is still possible to take the standard deduction if you own a small business. Many small businesses file a Schedule C to report income and expenses related to the business. Various businesses can have large deductions (and income) including the home office deduction.