552. What is the standard deduction?Nuco Employeercline202014-07-29T18:38:00Z2014-07-29T18:38:00Z36193532Hewlett-Packard298414314Site Map/General Income Taxation/Individuals/Deductions/StandardSite Map/General Income Taxation/Individuals/Taxable Income-Standard DeductionTaxFactsDefaultArticle124011431-00-tf2.xml1431.00;#1733;#1730;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 2What is the standard deduction?19500.0000000000TaxFactsDefaultArticleSBMEDIA\moss-admin2010-01-14T22:28:27Z4111dbb3-6119-41fc-9d9c-28768801cec4|5c4c95ad-8fb8-4c57-a384-b9c2a1d97a7e|bf852b3c-2752-4026-9460-21a9835473f0552. What is the standard deduction?There are two ways that taxable income may be calculated: taxpayers may subtract from adjusted gross income (see Q 536) the sum of their personal exemptions and the standard deduction. Alternatively, taxpayers can deduct from adjusted gross income their allowable personal exemptions (see Q 543, Q 544) and the total of their itemized deductions (see Q 545).IRC Sec. 63.In the case of individuals, the standard deduction for taxable years beginning in 2014 is $12,400 for married individuals filing jointly and surviving spouses; $9,100 for heads of households, $6,200 for single individuals and married individuals filing separately.IRC Sec. 63(c); Rev. Proc. 2013-35. The standard deduction is adjusted annually for inflation.IRC Sec. 63(c)(4).Individuals who do not itemize and who are elderly (age 65 or older) or blind are entitled to increase their standard deduction. For taxable years beginning in 2010, individuals who are married or are surviving spouses are each entitled to an additional deduction of $1,200 (in 2014) if they are elderly and an additional $1,200 (in 2014) deduction if they are blind. The extra standard deduction is $1,550 (in 2014) for unmarried elderly taxpayers and $1,550 (in 2014) for unmarried blind taxpayers.IRC Sec. 63(f); Rev. Proc. 2013-35, above. The additional amounts for elderly and blind individuals are indexed for inflation.IRC Sec. 63(c)(4).The following taxpayers are ineligible for the standard deduction and thus must itemize their deductions or take a standard deduction of zero dollars: (1) married taxpayers filing separately, if either spouse itemizesSee, e.g., Legal Memorandum 200030023., (2) non-resident aliens, (3) taxpayers filing a short year return because of a change in their annual accounting period, and (4) estates or trusts, common trust funds, or partnerships.IRC Sec. 63(c)(6).For taxable years beginning in 2014, the standard deduction for an individual who may be claimed as a dependent by another taxpayer is the greater of $1,000 or the sum of $350 and the dependent’s earned income (but the standard deduction so calculated cannot exceed the regular standard deduction amount above).IRC Sec. 63(c)(5); Rev. Proc. 2013-35, above. These dollar amounts are adjusted for inflation.IRC Sec. 63(c)(4).“Marriage penalty” relief. EGTRRA 2001 increased the basic standard deduction for a married couple filing a joint return, providing for a phase-in of the increase until the basic standard deduction for a married couple filing jointly equaled twice the basic standard deduction for an unmarried individual filing a single return by 2009. JGTRRA 2003 accelerated the phase-in, providing that the basic standard deduction for a married couple filing a joint return equaled twice the standard deduction for an unmarried individual filing a single return for 2003 and 2004, then reverting to the lower, gradually increasing standard deduction amounts provided for under EGTRRA for 2005 through 2009. However, under WFTRA 2004 the standard deduction for married individuals filing jointly (and surviving spouses) is twice the amount (200%) of the standard deduction for unmarried individuals filing single returns for tax years beginning after December 31, 2003.IRC Sec. 63(c). The larger standard deduction for married individuals filing jointly was scheduled to “sunset” (expire) for taxable years beginning after December 31, 2012, at which time the standard deduction in effect prior to the enactment of EGTRRA 2001 was to become effective (i.e., the standard deduction for married individuals filing jointly would, once again, be 167% of the standard deduction for single individuals).JGTRRA 2003 Sec. 107. The American Taxpayer Relief Act of 2012 prevented this sunset, so that the standard deduction for married individuals filing jointly (and surviving spouses) continues to be equal to 200% of the standard deduction for individual filers for tax years beginning after 2012.See Rev. Proc. 2013-35, above.