WHAT'S THE STANDARD DEDUCTION FOR 2021 vs 2020?

You have an important decision to make each time you fill out your federal income tax return: Take the standard deduction or claim itemized deductions. And, of course, you'll always want to pick whichever one helps you the most. As predicted, the number of American taxpayers claiming the standard deduction on their tax return shot up significantly after the 2017 tax reform law. Why? Because that law nearly doubled the standard deduction amount.

Before the tax reform law, about two-thirds of all taxpayers claimed the standard deduction. That jumped to almost 90% for the 2018 tax year, which was the first year for the enhanced standard deduction. Since then, the vast majority of American taxpayers have continued to claim the standard deduction on their tax return.

Taxpayers who are at least 65 years old or blind can claim an additional 2021 standard deduction of $1,350 ($1,700 if using the single or head of household filing status). For anyone who is both 65 and blind, the additional deduction amount is doubled.

If you can be claimed as a dependent by another taxpayer, your standard deduction for 2021 is limited to the greater of $1,100 or your earned income plus $350 (but the total can't be more than the basic standard deduction for your filing status).

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