What is the standard 2022 discount?

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Tax deductions allow you to reduce the amount of income that you are taxed on when you file Federal income tax Back with the Internal Revenue Service. The standard deduction is available to most taxpayers.

Although the exact amount of the IRS standard deduction changes each year, it has offered at least $12,000 to $24,000 in taxable income reduction for every taxpayer since 2018, when the Tax Cuts and Jobs Act took effect.

What is the standard discount?

The standard deduction allows you to reduce your taxable income by a specific dollar amount, depending on your income Tax filing status. If you apply as a single person, you will get a lower discount than someone applying as head of household or a couple filing jointly.

says Armin Alagian, CPA and Founder Al-Ajajian Group In Los Angeles. “If you are over 65 or blind, you can get an extra amount added to your standard deduction.”

Here’s a simple example of how the standard deduction might look: If you have $80,000 in gross income and you file your return as a single person, are under 65, and are not blind, you will qualify for a standard deduction of $12,950 on your account. 2022 tax return. This means that you’ll only be taxed on the $67,050 in income, assuming there are no other deductions above the line.

Standard discount: 2022 and 2023

The standard discount amount is adjusted each year to account for inflation. It has risen steadily since the introduction of the standard discount in 1970.

In 2023, it is rising again, jumping about 7% from its levels in 2022.

Additional amounts for people 65 years of age or older who are blind

If you are over 65 or blind, you qualify for an additional standard deduction of $1,500 to $1,850, depending on your enrollment status. If you are both elderly and blind, this amount is doubled.

How does the standard discount work?

When filing your federal tax return, you can choose to use either the standard deduction or itemize your deductions, whichever amount is higher.

“All taxpayers automatically get the standard deduction,” says Algean. “Some people who have certain expenses that fall under the itemized deduction category, such as excess health expenses, mortgage interest, property tax, and charitable deductions, can choose to itemize their deductions.”

If you choose the standard deduction, you will claim it Figure 1040. For itemized discounts, you will need schedule a To list all eligible expenses that you are claiming.

Who qualifies for the standard deduction?

Most taxpayers qualify for the standard deduction. If you choose to itemize your deductions, you also won’t be able to claim the standard deduction.

In addition, you may not qualify for the standard deduction if:

  • You and your spouse file your returns separately, and your spouse itemizes her deductions.
  • Offered as a property, trust, mutual trust, or partnership.
  • You are filing a return for less than 12 months due to a change in your account term.
  • You are a non-resident alien or dual status alien during the tax year.

over there Exceptions to the non-resident alien ruleSo be sure to check with the IRS if this applies to you.

Frequently Asked Questions

The standard deduction for tax year 2022 — which is a tax return you file in spring 2023 — is $12,950 for single filers and married couples filing separately, $19,400 for home filing employers, and $25,900 for married couples filing together.

The standard deduction for tax year 2023 is $13,850 for single taxpayers and married couples filing separately, $20,800 for home equity, and $27,700 for married couples filing jointly.

If your income is less than the standard deduction, you don’t have to file a federal application Tax return. But, you may still want to claim back the taxes you paid over the course of the year or claim refundable tax credits, such as the Earned Income Tax Credit.

You should take the standard discount if it is greater than the total Vocabulary cuts Will be. If your itemized deductions total is higher, you must claim those deductions instead. Talk to a tax professional if you are not sure which strategy is best for your situation.

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