income taxes

IRS Standard Deduction increases in 2021

The standard deduction for married couples filing jointly for tax year 2021 is increasing to $25,100, up $300 from the previous year. Filers age 65 and older get an additional amount of $1300.

For single taxpayers and married individuals who file separately, the standard deduction is increasing to $12,550 for 2021, up $150.

For heads of households, the standard deduction will be $18,800, up $150.

Remember that the personal exemption was eliminated as part of the Tax Cuts and Jobs Act of 2017.

Source: Financial Planning for Women