What is the standard deduction for 2022?

THANKS to standard deductions, many Americans can make a large chunk of their income tax-free.

Standard deductions are a specific total that reduces the amount of income that Americans can be taxed on.

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This ensures that taxpayers have at least some income that won’t be subject to federal income tax.

Although, how much you can deduct depends on your filing status and age.

Plus, senior citizens and blind individuals qualify for additional deductions.

Below we explain what you need to know.

What are the standard deductions for 2022?

The standard deductions typically change each year as wages increase with inflation.

For the 2022 tax year, the standard deduction for most couples will rise to $25,900 – up by $800 from this year.

And for most single filers, the threshold will climb to $12,950 – an increase of $400.

Heads of households will be able to deduct $19,400 on their 2022 taxes.

If you are married filing jointly and you or your spouse is 65 or older, your standard deduction increases by $1,400.

If both you and your spouse are 65 or older, your standard deduction increases by $2,800.

If one of you is legally blind, it increases by $1,400, and if both are, it increases by $2,800.

Who doesn’t get a standard deduction?

It’s important to note that certain taxpayers aren’t entitled to the standard deduction.

This includes a married individual filing as married filing separately whose spouse itemizes deductions.

It also includes an individual who was a nonresident alien or was dual-status during the year.

Individuals who file a return for a period of fewer than 12 months due to a change in his or her annual accounting period also don’t get one.

Plus, an estate or trust, common trust fund, or partnership won’t get one either.

Who has to file a tax return?

Whether you need to file a tax return depends on your age, filing status, income level and source of income.

If your 2022 gross income exceeds the standard deduction, you must file a federal income tax return.

The IRS defines gross income as all income you receive in the form of money, goods, property and services.

This includes income from outside the US, sale of stock, a business and the sale of your home.

Filing requirements for dependents

Even if a person is claimed as a dependent on another person’s tax return, the person will generally have to file their own tax return if the person’s total income is more than the standard deduction.

Earned income includes salaries, wages, tips, professional fees, and taxable scholarships and fellowship grants.

While unearned income includes taxable interest, ordinary dividends, capital gain distributions, unemployment compensation, taxable Social Security benefits, pensions, annuities, and distributions from a trust.

Single dependents below 65 and who aren’t blind must file a return if any of the following apply.

1. Your unearned income was more than $2,800 ($4,500 if 65 or older and blind).
2. Your earned income was more than $14,250 ($15,950 if 65 or older and blind).
3. Your gross income was more than the larger of—
   1. $2,800 ($4,500 if 65 or older and blind), or
   2. Your earned income (up to $12,200) plus $2,050 ($3,750 if 65 or older and blind).

Married dependents below 65 and who aren’t blind must file a return if any of the following apply.

1. Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.
2. Your unearned income was more than $2,450 ($3,800 if 65 or older and blind).
3. Your earned income was more than $13,900 ($15,250 if 65 or older and blind).
4. Your gross income was more than the larger of—
   1. $2,450 ($3,800 if 65 or older and blind), or
   2. Your earned income (up to $12,200) plus $1,700 ($3,050 if 65 or older and blind).

You can find the full income requirement details on the IRS website.

What if you receive Social Security benefits?

If you receive Social Security benefits, it will depend on a few factors to determine if it’s necessary for you to file a tax return.

Unmarried seniors will typically need to file a return if the individual is at least 65 years of age, and the individual’s gross income is $14,250 or more.

If the individual is married and wants to file a joint return with a spouse who is also 65 or older, they must file a return if their combined gross income is $27,800 or more.

In most cases, if an individual only receives Social Security benefits the person wouldn’t have any taxable income, and the person wouldn’t need to file a tax return.

You may want to submit a tax return to claim a tax refund

Even if you aren’t required to file a tax return, you may still be eligible for a refund.

Refunds are available for W-2 employees, which are typically salaried workers, and others who have had taxes withheld from their paycheck during the year.

The government also offers a few tax credits for low-income individuals and seniors that may provide you with some money back at tax time.

It is important to note that the IRS doesn’t automatically issue refunds without a tax return.

Therefore, if you want to claim the money that you are owed, then you should file a tax return.

The Sun also explains when tax refunds come out in 2022 and key tax changes for 2022.

Plus, here are five ways to boost your tax refund.