Standard Deduction
A fixed amount you can subtract from income without itemizing, reducing your taxable income.
What does standard deduction mean?
Most filers take the standard deduction rather than itemizing, especially since it nearly doubled in 2018. You choose the larger of the standard deduction or your total itemized deductions.
Related terms
Standard Deduction — frequently asked
Should I take the standard deduction or itemize?
Take whichever is larger. Most filers come out ahead with the standard deduction; itemizing wins only if deductible costs — mortgage interest, state and local taxes, and charitable gifts — add up to more than the standard amount.
Can I claim the standard deduction if I am self-employed?
Yes. The standard deduction applies to your personal return regardless of self-employment. Separately, you still deduct legitimate business expenses on Schedule C, and those reduce your self-employment income directly.