Apr 5, 2023
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Tax returns are due April 18, 2023 for the 2022 tax year.
You’re probably busy making sure you’ve got all that you need to file your tax return and make the most of it.
By opting for a standard deduction you have the potential to reduce the amount of income you’re taxed on and save yourself some of the nitty gritty work of tax preparation as well.
Is standard deduction the right choice for your taxes this year?
What is the standard deduction for 2022?
The standard deduction is a specific dollar amount that reduces the amount of income you’re taxed on.
The standard deduction amount for the 2022 tax year is $12,950 for single filers, $25,900 for joint filers and $19,400 for heads of household.
You can use this IRS tool to calculate your standard deduction for 2022 by filling in a bit of information yourself and your income.
With inflation on the rise, the standard deduction amount has risen too. For single filers it is up $400 from the previous year and for joint filers it is up by $800. An increase is expected to be seen for the 2023 tax year as well.
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When should you claim the standard deduction?
When it comes to lowering your taxable income, you have the choice of either standard or itemized deduction.
While the standard deduction lowers your adjusted gross income (AGI) by a fixed amount, the itemized deduction lowers your AGI based on individual, eligible expenses such as charitable donations, mortgage interest on up to two homes, property taxes and medical expenses.
If your standard deduction is larger than your itemized deduction, you should claim it. But sometimes it's better to itemize, especially if you've had a lot of expenses or are self-employed.
A tax software provider like TaxSlayer can help you run the numbers, to see which option is better for you.
When you answer some questions about itemized deductions that might apply to you, TaxSlayer can help you determine if claiming a standard deduction or itemized deductions will give you a lower tax bill.
From there, you can utilize TaxSlayer’s software to file in the way that works best for you — whether that be a standard or itemized deduction.
Ready to file?
Once you’ve weighed your options and decided if standard or itemized deduction is the best way to optimize your tax year, you can get to filing.
TaxSlayer’s software offers dynamic pricing depending on the support you want during the filing process.
They have four different sign up options at varying fees:
- Simply Free: $0 to prepare and file federal and state.
- Classic: $27.95 + $42.95 to file state.
- Premium: $49.95 + $42.95 to file state.
- Self-employed: $59.95 + $42.95 to file state.
Each of these options boast great features at an affordable price and span a variety of needs.
For instance, the free version is great for simple tax situations — like if you don’t claim dependents, have rental income or a business. On the other hand, the Premium option covers all forms, deductions and credits.
Filing your taxes with TaxSlayer is easy. You can file online and they promise fast returns via direct deposit. Plus, if you have any questions or concerns, you have access to unlimited phone and email support.
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Em Norton is a Content Specialist at moneywise.com. They have been with the company since 2022.
