KNOWLEDGE|
(1) |
Non-itemizers receive a standard deduction, with the amount determined based upon filing status: (a) Single: $14,600 in 2024 ($15,000 in 2025) (b) HOH: $21,900 in 2024 ($22,500 in 2025) (c) MFJ or surviving spouse: $29,200 in 2024 ($30,000 in 2025) (d) MFS(only available if both taxpayer and spouse do not itemize): $14,600 in 2024 ($15,000 in 2025) |
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(2) |
Additional deduction for the elderly and/or blind
The U.S. tax system grants an additional standard deduction to taxpayers who are age 65 or older, blind, or both, with amounts structured by filing status (single or married), the number of qualified individuals (1 or 2), and tax year.
For 2024, single filers with one qualified individual (either age 65 or blind) are eligible for $1,950 (which doubles to $3,900 if both age 65 and blind), while married joint filers receive $1,550 for one qualified spouse (age 65 or blind, increasing to $3,100 if both criteria are met); for two qualified individuals, married couples get $3,100 if each is age 65 or blind, or $6,200 if both are age 65 and blind.
In 2025, these amounts increase: single filers receive $2,000 (or $4,000 for both conditions), married joint filers obtain $1,600 (or $3,200 for one spouse meeting both), and for two qualified individuals, $3,200 (each age 65 or blind) or $6,400 (both age 65 and blind).
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(3) |
Standard deduction—dependent of another
For 2024, the standard deduction amount is the higher of $1,300 ($1,350 in 2025) or earned income plus $450 (remaining $450 in 2025).
The dependent’s standard deduction remains constrained by the ordinary standard deduction for the tax year. Dependent taxpayers may claim the same supplementary standard deduction as other taxpayers for blindness and/or age 65-or-older status.
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(1) |
Medical expenses
Qualified medical expenses may be deducted only if they exceed insurance reimbursements and 7.5% of the taxpayer’s AGI. Eligible expenses include costs incurred for the taxpayer, spouse, or dependent who relies on them for more than half their support.
Deductible medical costs encompass prescription medications, medical professional services, health insurance premiums deemed medically necessary, travel expenses to healthcare facilities (either actual costs or the IRS-standard mileage rate), and disability-related expenses—such as modifications to remove architectural barriers in residences to accommodate a disability.
Non-deductible costs comprise elective surgeries, life insurance premiums, non-medical capital expenses, health club memberships, and personal care products like toothpaste, OTC drugs, or diaper services.
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(2) |
State, local, and foreign taxes
Itemized tax deductions for state and local income taxes, property taxes, and sales taxes are capped at $10,000 in total. For tax years 2018 through 2025, foreign real property taxes—unless incurred in a trade or business—are non-deductible. Non-deductible taxes comprise federal taxes, estate/inheritance taxes, and taxes documented on Schedule C (business operations) or Schedule E (rental activities).
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(3) |
Interest expense
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(4) |
Charitable contributions
Charitable contributions to eligible organizations are tax-deductible but require proper documentation (e.g., canceled checks, written receipts) for all cash gifts. Donors should avoid contributing property with a loss basis, as no tax benefit applies.
Cash donations are limited to 60% of AGI; long-term capital gain property donations to public charities are capped at 30% of AGI (20% for private foundations). Excess contributions roll over for five years.
Deductions apply only to contributions exceeding the value of benefits received. Organizations must provide a written statement for donations over $75 made in exchange for goods/services, outlining the deductible amount.
Taxpayers may claim a charitable deduction for expenses incurred when hosting a full-time student (e.g., exchange student) in their home, provided the student is in 12th grade or younger. The deduction totals up to $50 per month for each full month (15+ days) the student resides in the home and attends school.
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Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |
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