What Is Standard Deduction?
From the SB Advisors Academy money glossary · Free, no signup
A fixed dollar amount you can subtract from your taxable income without itemizing individual deductions. For most Americans it is more advantageous than itemizing.
A worked example
In 2024 the standard deduction for a single filer is $14,600. You subtract that from your income before calculating taxes owed.
Category
Part of the "Taxes" group in the money glossary.