Page 1: What Is a Standard Deduction?
When you do your taxes, the government gives you a choice. You can either:
- List out all your tax-deductible expenses (this is called itemizing),
or - Take the standard deduction, which is a fixed amount that reduces how much of your income the government can tax.
In 2025, the IRS is giving people who file taxes with their spouse a bigger break. This is called the higher standard deduction. For joint filers, that means you can subtract $31,500 from your income without needing to list any expenses.
So, if you and your spouse earned $80,000 total in 2025, and you use the higher standard deduction ($31,500 for joint filers) to reduce your taxable income without itemizing, the IRS will only tax you on $48,500. That’s a big savings!
Page 2: Why the Higher Standard Deduction Matters
Many people used to save money by itemizing—adding up things like medical bills, donations, and mortgage interest. But itemizing takes time, and not everyone has enough expenses to make it worth it.
Now, with the new higher standard deduction ($31,500 for joint filers) in 2025, most couples don’t need to itemize. You can just subtract $31,500 from your total income and move on. It’s easier and saves you money.
Let’s look at another example:
- Sarah and David made $60,000 together in 2025.
- They don’t have many deductions to itemize—just $5,000 in donations and $3,000 in medical bills.
- If they itemize, they can only subtract $8,000.
- But if they use the higher standard deduction ($31,500 for joint filers) to reduce their taxable income without itemizing, they subtract $31,500 instead!
Clearly, the standard deduction helps them more. That’s why millions of people now use this option.
Page 3: Tips to Use the Standard Deduction Correctly
Here are a few tips to make sure you get the most benefit:
- File Jointly: This is only for people filing taxes together—like married couples. If you’re single, your deduction is smaller.
- Know What It Covers: You can still claim some extra deductions on top of the standard deduction, like student loan interest or IRA contributions.
- Check Each Year: The IRS changes the standard deduction every year for inflation. For 2025, it’s $31,500 for joint filers.
- Use Tax Software: Most tax programs will show you if it’s better to itemize or use the standard deduction. But most will find it better to use the higher standard deduction ($31,500 for joint filers) to reduce your taxable income without itemizing.
Using the standard deduction makes taxes easier and faster. It also helps most people pay less. In 2025, the number is higher than ever before, so be sure to take advantage.
Remember, when you use the higher standard deduction ($31,500 for joint filers) to reduce your taxable income without itemizing, you are getting a powerful tax benefit without needing to track every little receipt.
