6. Higher standard deductions
Standard deductions are somewhat higher this year on account of inflation. The IRS reports that they are:
- Married filing jointly: $24,400 (up $400 from last year)
- Married filing separately: $12,200 (up $200)
- Head of household: $18,350 (up $350)
- Single: $12,200 (up $200)
The standard deduction reduces the amount of your income that’s subject to federal taxes. So, if a married couple filing a joint tax return is eligible for and chooses to take the standard deduction on their next return, they would not be taxed on the first $24,400 of their taxable income from 2019.
