The Standard Deduction Is Going Up by $750 in 2024. Should You Claim It?

If you aren't eligible for many tax deductions, you probably take the standard deduction instead of itemizing at tax time. The standard deduction is the amount the IRS lets you automatically deduct from your adjustable gross income to lower your federal tax bill.

Most years, the IRS increases the standard deduction to account for inflation. In 2024, the standard deduction will be $750 higher for most single filers and $1,500 higher for most married couples filing jointly. Read on to learn what a higher standard deduction will mean for you when you file your taxes.

What is the standard deduction in 2024?

When the standard deduction is higher than your total tax-deductible expenses, taking the standard deduction makes sense. Here's how the standard deduction breaks down in 2023 and 2024:

Some taxpayers are eligible for an additional standard deduction, though:

• Single filers and heads of household: You can take an additional $1,950 standard deduction in 2024 ($1,850 in 2023) if you're 65 or older, or blind. If you're at least 65 and blind, you can take two additional standard deductions, for $3,900 total ($3,700 total in 2023).
• Married couples filing jointly or separately: You can take an additional $1,550 standard deduction in 2024 ($1,500 in 2023) for each person who's 65 or older, or blind. For each person who's 65 and blind, you can take two additional standard deductions, for $3,100 total ($3,000 total in 2023).

Standard deduction vs. itemizing

When you file your taxes, the big question is often: Should I itemize or take the standard deduction? Fortunately, the best tax filing software makes it pretty easy to answer this question.

But if you can't stand to wait until tax season to find out the answer, here's a spoiler: Taking the standard deduction is the best move for the vast majority of Americans. In fact, recent IRS data shows that nearly 90% of taxpayers now opt for the standard deduction.

One big reason is the Tax Cuts and Jobs Act of 2017, which nearly doubled the standard deduction. The higher standard deduction meant that taxpayers needed a lot more deductible expenses in order for these costs to exceed the flat standard deduction. In fact, the Tax Foundation estimates that the higher standard deduction led to a drop of about 17 percentage points in people itemizing on their returns.

Do you have to itemize to claim deductions?

Not all tax deductions require you to itemize on your return. Some deductions are known as above-the-line deductions, which means you can claim them even if you're taking the standard deduction. Examples include:

• Up to $2,000 of interest on loans for education
• Contributions to a traditional IRA, depending on your income and whether you or your spouse have a workplace retirement account
• Health-savings account (HSA) contributions if you made them with after-tax money
• Some self-employment expenses

But if you're taking a deduction for mortgage interest or a tax-deductible home equity loan, you'll need to itemize. The same goes for many other common deductions, including charitable contributions and unreimbursed medical or dental expenses.

What will a higher standard deduction mean for you at tax time?

Generally, the higher deduction we'll see in 2024 makes it even more likely that taking the standard deduction will make sense for you when you file your return for the year in 2025.

But don't leave anything to chance. Keep careful records for any expenses you think may be deductible in case you do opt to itemize.

Finally, always give yourself plenty of time when you're filing your taxes in case you have questions. If you're not sure whether to take the standard deduction or itemize, or you're uncertain if you're allowed to deduct an expense, it's essential to consult with a tax professional.