The standard deduction is the dollar amount you’re allowed to take on your tax return to reduce your overall taxable income. The amount of the deduction is usually adjusted each year for inflation. You can claim deductions on your federal tax return one of two ways. You can use the standard deduction or you can itemize your deductions.

- If you are married filing jointly and you OR your spouse is 65 or older, your standard deduction increases by $1,500. If BOTH you and your spouse are 65 or older, your standard deduction increases by $3,000.

- But not everyone may take the standard deduction. For example, taxpayers who choose to itemize their deduction (this is when you list and add up your eligible deductions one by one) cannot claim the standard deduction. The IRS also provides the following list of taxpayers who are not eligible:

• A married individual filing separately whose spouse itemizes deductions.

• An individual who was a nonresident alien or dual status alien during the year (certain exceptions may apply).

• An individual who files a return for a period of less than 12 months due to a change in his or her annual accounting period.

• An estate or trust, common trust fund, or partnership.