Federal Standard Deduction

Standard Deduction 2020

The standard deduction is one of the main pillars of the American tax code. At the start of most tax seasons, the standard deduction faces an increase of about 2%. This increase is mainly reasoned with the inflation rate and the changes to the cost of living.

Most recently, the standard deduction amount nearly doubled. It went from $6,350 to $12,000 with the Tax Cuts and Jobs Act of 2017. Although the standard deduction increase was big, the personal exemptions were eliminated. Therefore, the amount for the personal exemptions which were $4,000 was added to the standard deduction.

In 2018 and beyond, until further notice from the IRS, personal exemptions are eliminated. In the foreseeable future, we see no reason for being added to the tax code.

The changes to the overall tax code with the increase in the standard deduction made the tax code of the United States a lot simpler. In fact, that’s what most tax professionals referred to the changes.

Standard Deduction Amount for 2020

The standard deduction for 2020 is set to be $12,400 for single filers and $18,650 for the head of household which is an increase of $200 for single filers and $300 for the head of households. Those who’ll file jointly with their spouse will get the double of what single filers get. So the standard deduction amount for joint filers is $24,800.

Look at the list below to see the standard deduction amount for all filers.

  • Single: $12,400
  • Married Filing Separately: $12,400
  • Married Filing Jointly: $24,800
  • Qualified Widow(er): $24,800
  • Head of Household: $18,650

Standard Deduction for Certain Situations

standard deduction for elders

Your filing status is the main object that determines how much standard deduction you’ll claim. Other than how you file your taxes, certain cases apply where you might be eligible for a higher standard deduction. This includes being over 65 years old (or spouse), being blink or having a limited field of vision (or spouse).

If you fit either one of these cases, you and your spouse (if qualified) can claim an extra of $1,300 in the standard deduction.

Here are a few examples of an increased standard deduction

TaxpayerStandard Deduction in 2020
67-year-old qualifying widow$26,100 ($24,800 + $1,300)
30-year-old single who is blind$13,700 ($12,400 + $1,300)
Married couple both over the age of 65 one of whom is blind$27,400 (12,400 + $1,300 + $1,300)

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