How much is the 2023 Standard Deduction?
Each year at tax time, you add up your itemized deductions (Taxes, Medical expenses, Chari- table contributions, etc.). Based on your total itemized deductions, you choose to subtract the larger of the two: itemized deductions or the annual Standard Deduction (SD) set by law. The SD is indexed and changes every year. It was increased by 5.4 percent for 2023. The amount of the SD for tax year 2023 is:
Single or married filing separately
| Under age 65 | $13,850 |
| Age 65 or older | $15,700 |
Married filing jointly
| Under age 65 | $27,700 |
| One spouse age 65 | $29,200 |
| Both spouses age 65 | $30,700 |
Head of household
| Under age 65 | $20,800 |
| Age 65 or older | $22,650 |
If you itemize your deductions, remember your deduction for state and local taxes is limited to $10,000. Unless you have huge medical expenses or substantial gifts to charity, many Villagers will find the SD to be the larger option. This is especially true with Villagers filing jointly.
However, the State of California income tax return has different SD amounts. For 2023 returns, the SD for a single taxpayer is $5,363 and a SD of $10,726 for married filing joint returns. Many Villagers deduct the SD on their Federal return and chose to itemize on their California return. So yes, it might be beneficial to calculate your itemized deductions!
Questions? Call SRS at 408-239-5253.
Note: The Senior Resource Services (SRS) office is currently closed for drop-in assistance. You may still leave messages at 408-239-5253 as we monitor phone messages every day and can still answer questions by phone. Please note that the return phone call will be from a volunteer calling from their home and your phone identification will not read SRS. We can also e-mail handouts. The purpose of SRS is to provide education and general business and financial information. All assistance is free and confidential. You should ask your professional adviser about your individual situation.