With tax season starting this week, people are trying to figure out which type of deduction they should take when filing their return with the IRS.
There is the option to take a standard deduction or itemize your deductions.
Most people choose the standard deduction, a set amount the IRS creates annually.
A standard deduction brings the amount of taxable income down with your tax return.
Many people choose to do it this way because itemizing your deductions involves tracking every receipt and expense through the year.
Standard deduction set by the IRS for 2022
Different factors will determine the amount for your deduction.
This includes your filing status, age, if you’re blind, and if you can be claimed by another person paying taxes.
There has been a change in tax brackets and deductions for the year 2022, which will impact the 2023 tax season.
In 2021 the standard deduction was $12,550 for individuals and $25,100 for married couples filing jointly. Head of household filers have a deduction of $18,800.
In 2022, the standard deduction for individuals is $12,950. It’s $25,900 for married couples filing jointly, and $19,400 for head of household.
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