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Amid soaring inflation, the IRS this week announced higher federal income tax brackets and standard deductions for 2023. The agency has boosted the income thresholds for each bracket, applying to tax year 2023 for returns filed in 2024. These brackets show how much you'll owe for federal income taxes on each portion of your "taxable income," calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income. Higher standard deductionThe standard deduction will also increase in 2023, rising to $27,700 for married couples filing jointly, up from $25,900 in 2022. Single filers may claim $13,850, an increase from $12,950. More from Year-End PlanningOther tax provisions adjustThe IRS also boosted figures for dozens of other provisions, such as the alternative minimum tax, a parallel system for higher earners and the estate tax exemption for wealthy families. There's also a higher earned income tax credit, bumping the write-off to a maximum of $7,430 for low- to moderate-income filers. And employees can funnel $3,050 into health flexible spending accounts. While the agency hasn't yet released 2023 limits for 401(k) and individual retirement accounts, experts predict IRA limits will jump to $6,500 for savers under 50.
by Annie Spratt These standard deductions will
be applied by tax year for your IRS and state return(s) respectively. As a result of the latest tax reform, the standard deductions have increased significantly, however many other deductions got discontinued as a result of the same tax reform. If all this reading is not for you, simply
estimate your 2021 Tax Return for free and get real results as they only apply to your tax situation. Want to get IT done? Sign up free here and eFileIT. Furthermore, when you
prepare and e-File your 2021 Tax Return on eFile.com, the eFile Tax app will work for your benefit and either apply or recommend standard deductions or itemized deductions. In other words, you don't have to figure out whether to itemize deductions or use standardized deductions. Choosing to
itemize versus a standard deduction on your return or not is done by the eFile app based on the information you enter. Even if the itemized deduction is more beneficial to you, you can still select and claim one of the federal standard deduction amounts below based on your tax return for the given tax year. What is the standard
deduction? Simply put, the government and state tax agencies allow taxpayers to deduct a certain amount of their income from being subject to income taxes. This amount for a single taxpayer in 2021 is $12,550 - this has a few implications. For one, if you make under the standard deduction, you do not have to file - are you wondering if you make
enough to file taxes? Example: A single taxpayer makes $20,000 annually from employment reported on Form W-2. On a federal level, the IRS allows the taxpayer to deduct $12,550 from this, meaning only $7,450 of the total income is subject to income taxes. There are different rules if you make income from
self-employment or as an independent contractor. In general, if you make $400 or more from self-employment, you will need to file taxes. These standard deduction amounts are for 2021 Tax Returns that are due on April 18, 2022. You
can e-File 2021 Tax Returns until October 15 October 17, 2022, but late filing or late tax payment penalties might apply if you owe taxes. Below, find standard deductions organized by tax return filing status, age, and an extra deduction amount if the taxpayer is legally
blind. Filing Status Age Standard Deduction Single Younger than 65 $12,550 Single 65 or Older $14,250 Head of Household Younger than 65 $18,800 Head of Household 65 or Older $20,500 Married Filing Separately Younger
than 65 $12,550 Married Filing Separately 65 or Older $14,250 Married Filing Separately As married filing separately if one spouse itemizes deductions, the other spouse can not claim the standard deduction. If one spouse itemizes deductions, then the other spouse must also itemize deductions in
order to claim deductions. Attention: This standard deduction table is only here for information purposes. When you prepare and eFile your taxes on eFile.com, all of these various scenarios will be calculated for you. Plus, the eFile tax app will calculate itemized deductions and make recommendation to you. However, you decide which deduction method you prefer. eFileIT and Make IT Less Taxing! For married filing jointly, the standard deduction is greatly impacted by age and/or if one or both of the taxpayers is legally blind. Below, the amount is indicated by the standard deduction most will fall into, the standard deduction amount if one taxpayer was blind, and the amount if both were blind. Additionally, if one spouse is over 65 and the other is not, additional deduction is added for the older spouse. We encourage using the eFile app to determine this and avoid any confusion. Married Filing Jointly Younger than 65 $25,100 Married Filing Jointly 65 or Older One: $26,450 Married Filing Jointly Sample: If one spouse was age 62 and legally blind and the other spouse was age 67, the standard deduction in this case would be calculated as follows: $25,100 (standard MFJ) plus $1,350 for the spouse under 65 and legally blind, plus $1,350 for the spouse over 65. Then, the Total Standard Deduction would be: $27,800 Qualifying Widow(er) Younger than 65 $25,100 Qualifying Widow(er) 65 or Older $26,450 Dependent At any age, if you are a dependent on another person's tax return and you are filing your own tax return, your standard deduction can not
exceed the greater of $1,100 or the sum of $350 and your individual earned income. Additionally, this rule does not apply if the dependent makes equal to or greater than the standard deduction for their filing status. Learn more about how to file a tax return as a dependent. Nonresident Aliens As a nonresident alien and dual-status aliens you are not allowed to claim the standard deduction and must itemize in order to claim tax deductions on Form 1040NR. Standard Deduction Exception Summary for Tax Year 2021
To qualify as blind by the IRS, you must keep in your tax records a certified letter from an eye doctor (or optometrist) stating that you have non correctable 20/200 vision in your best eye or that your field of vision is restricted to 20 degrees or less. For more information about additional standard deduction for any disabilities, see Exemptions, Standard Deduction, and Filing Information. See what other tax deductions you may qualify to claim on your tax return. 2022 Tax Year Standard Tax Deduction Amounts2022 Returns will be able to be e-filed in 2023 - use the standard deductions for 2022 below to begin tax planning for 2022 by using the 2022 Tax Calculator. Filing Status Age Standard Deduction Single Younger than 65 $12,950 Single 65 or Older $14,700 Head of Household Younger than 65 $19,400 Head of Household 65 or Older $21,150 Married Filing Separately Younger than 65 $12,950 Married Filing Separately 65 or Older $14,350 Married Filing Jointly Younger than 65 $25,900
Married Filing Jointly 65 or Older $27,300 Dependent At any age, if you are a dependent on another person's tax return and you are filing your own tax return, your standard deduction can not exceed the greater of $1,150 or the sum of $400 and your individual earned income. Additionally, this rule does not apply if the dependent makes equal to or greater than the standard deduction for their filing status. Learn more about
how to file a tax return as a dependent. Standard Deduction Exception Summary for Tax Year 2022
Standard Deductions for Previous Tax Years or Back TaxesIn the tables below, find previous year standard deductions by tax year. If you need to file a previous year return, use these resources. 2020 Tax Year Standard Tax Deduction Amounts2020 Tax Returns can no longer be e-filed. Calculate, prepare your 2020 Return here and see the 2020 Forms for you to complete, sign, print, and mail in. Filing Status Age Standard Deduction Single Younger than 65 $12,400 Single 65 or Older $14,050 Head of Household Younger than 65 $18,650
Head of Household 65 or Older $20,300 Married Filing Separately Younger than 65 $12,400 Married Filing Separately 65 or Older $14,050 Married Filing Jointly Younger than 65 $24,800 Married Filing Jointly 65 or Older $26,150 2019 Tax Year Standard Tax Deduction AmountsAll previous year tax returns can no longer be e-Filed. You can calculate and estimate back taxes with the eFile.com 2019 Tax Calculators. Then, complete, sign, and print the 2019 tax forms here on eFile.com. Click here for State Tax Returns. Filing Status Standard Deduction Head of Household $18,350 Married Filing Separately $12,200 Married Filing Jointly $24,400 Qualifying Widow(er) $24,400 2018 Tax Year Standard Tax Deduction AmountsAll previous tax year tax returns can no longer be e-Filed. You can calculate and estimate back taxes with the eFile.com 2018 Tax Calculators and complete, sign, and print the tax forms here on eFile.com. Click here for State Tax Returns. Filing Status Standard Deduction Head of Household $18,000 Married Filing Separately $12,000 Married Filing Jointly $24,000 Qualifying Widow(er) $24,000 Tax Year 2017 Standard Deduction AmountsBack taxes can no longer be e-Filed. You can calculate and estimate back taxes with the eFile.com 2017 Tax Calculators. Then, complete, sign, and print the tax forms here on eFile.com. Click here for State Tax Returns. Filing Status Standard Deduction Married Filing Separately $6,350 Married Filing Jointly $12,700 Qualifying Widow(er) $12,700 Tax Year 2016 Standard Deduction TableAll previous year tax returns can no longer be e-Filed. You can find the tax forms here. Filing Status Standard Deduction Married Filing Separately $6,300 Married Filing Jointly $12,600 Qualifying Widow(er) $12,600 Previous Tax Year 2015 Standard Deduction TableFiling Status Standard Deduction Married Filing Separately $6,300 Married Filing Jointly $12,600 Qualifying Widow(er) $12,600 Previous Tax Year 2014 Standard Deduction TableFiling Status Standard Deduction Married Filing Separately $6,200 Married Filing Jointly $12,400 Qualifying Widow(er) $12,400 Previous Tax Year 2013 Standard Deduction TableFiling Status Standard Deduction Married Filing Separately $6,100 Married Filing Jointly $12,200 Qualifying Widow(er) $12,200 IT is Income Taxes and we make IT easier for you. PrepareIT, but not alone! If all this information is overwhelming to you, let eFile.com make tax deductions simpler. We will select the correct deduction for your tax situation based on your answers to some simple tax questions. Then, we will calculate your deduction amount. Prepare your tax return now on eFile.com. TurboTax® is a registered trademark of Intuit, Inc. What is the extra standard deduction for seniors over 65?If you are age 65 or older, your standard deduction increases by $1,700 if you file as Single or Head of Household. If you are legally blind, your standard deduction increases by $1,700 as well. If you are Married Filing Jointly and you OR your spouse is 65 or older, your standard deduction increases by $1,350.
What is the standard deduction for a couple over 65 filing jointly?For 2022, they'll get the regular standard deduction of $25,900 for a married couple filing jointly. They also both get an additional standard deduction amount of $1,400 per person for being over 65. They get one more $1,400 standard deduction because Susan is blind.
What is the standard deduction for 2022 married filing jointly?The standard deduction is a specific dollar amount that reduces your taxable income. For the 2022 tax year, the standard deduction is $25,900 for joint filers, $19,400 for heads of household, and $12,950 for single filers and those married filing separately.
What is the standard deduction for seniors over 65 in 2022?Taxpayers who are at least 65 years old or blind will be able to claim an additional 2022 standard deduction of $1,400 ($1,750 if using the single or head of household filing status).
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What is the standard tax deduction for married filing jointly
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