Most people take the standard deduction, which lets you subtract a set amount from your income based on your filing status.
If your deductible expenses and losses are more than the standard deduction, you can save money by deducting them one-by-one from your income (itemizing). Tax software can walk you through your expenses and losses to show the option that gives you the lowest tax.
Some people, including nonresidents and partial-year filers, can’t take the standard deduction.
The standard deduction for 2023 is:
- $13,850 for single or married filing separately
- $27,700 for married couples filing jointly or qualifying surviving spouse
- $20,800 for head of household
Find the standard deduction if you’re:
If you’re married filing separately, you can’t take the standard deduction if your spouse itemizes. You must both choose the same method.
You can deduct these expenses whether you take the standard deduction or itemize:
- Alimony payments
- Business use of your car
- Business use of your home
- Money you put in an IRA
- Money you put in health savings accounts
- Penalties on early withdrawals from savings
- Student loan interest
- Teacher expenses
- For some military, government, self-employed and people with disabilities: work-related education expenses
- For military service members: moving expenses
If you itemize, you can deduct these expenses:
- Bad debts
- Canceled debt on home
- Capital losses
- Donations to charity
- Gains from sale of your home
- Gambling losses
- Home mortgage interest
- Income, sales, real estate and personal property taxes
- Losses from disasters and theft
- Medical and dental expenses over 7.5% of your adjusted gross income
- Miscellaneous itemized deductions
- Opportunity zone investment
Get answers to questions on itemized deductions and the standard deduction
Please visit the IRS Credits and deductions for individuals