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Categories: General Tax Terms

Standard Deduction
The Standard Deduction is a fixed dollar amount that reduces a taxpayer’s taxable income, allowing them to lower their overall tax liability. It is a benefit that taxpayers can choose to claim instead of itemizing deductions, which includes expenses such as mortgage interest, state taxes, and charitable contributions.

The amount of the Standard Deduction varies based on filing status (e.g., single, married filing jointly, head of household) and is adjusted annually for inflation. For example, for the tax year 2022, the standard deduction amounts are $12,950 for single filers and $25,900 for married couples filing jointly.

Taxpayers should evaluate whether to claim the Standard Deduction or itemize deductions based on which option provides a greater tax benefit.

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