Standard Deductions, Credits & Limits
Standard deduction amounts, capital gains thresholds, tax credit maximums, and retirement contribution limits from the IRS.
Standard Deduction by Year
| Year | Single | MFJ | MFS | HoH |
|---|---|---|---|---|
| 2026 | $16,100 | $32,200 | $16,100 | $24,150 |
| 2025 | $15,750 | $31,500 | $15,750 | $23,625 |
| 2024 | $14,600 | $29,200 | $14,600 | $21,900 |
| 2023 | $13,850 | $27,700 | $13,850 | $20,800 |
| 2022 | $12,950 | $25,900 | $12,950 | $19,400 |
| 2021 | $12,550 | $25,100 | $12,550 | $18,800 |
| 2020 | $12,400 | $24,800 | $12,400 | $18,650 |
Additional deduction for age 65+ or blind (2025): +$2,000 per condition (Single/HoH) or +$1,600 per condition per spouse (MFJ/MFS).
2025 Long-Term Capital Gains Rates
| Rate | Single | MFJ | MFS | HoH |
|---|---|---|---|---|
| 0% | Up to $48,350 | Up to $96,700 | Up to $48,350 | Up to $64,750 |
| 0.15% | Up to $533,400 | Up to $600,050 | Up to $300,025 | Up to $566,700 |
| 0.2% | Above | Above | Above | Above |
Applies to assets held longer than one year. Short-term gains are taxed as ordinary income.
Retirement & HSA Contribution Limits
| Account | 2025 Limit | 2025 Catch-Up | 2026 Limit | 2026 Catch-Up |
|---|---|---|---|---|
| Traditional / Roth IRA | $7,000 | +$1,000 (50+) | $7,500 | +$1,100 (50+) |
| 401(k) / 403(b) / TSP | $23,500 | +$7,500 (50+) | $24,500 | +$8,000 (50+) |
| 401(k) Ages 60–63 | $23,500 | +$11,250 | $24,500 | +$11,250 |
| HSA (Individual) | $4,300 | +$1,000 (55+) | $4,400 | +$1,000 (55+) |
| HSA (Family) | $8,550 | +$1,000 (55+) | $8,750 | +$1,000 (55+) |
2025 Child Tax Credit
2025 Earned Income Tax Credit
Standard vs. Itemized Deductions
Most taxpayers take the standard deduction — it's simpler and, since the 2017 Tax Cuts and Jobs Act nearly doubled it, it exceeds itemized deductions for the majority of filers.
You might benefit from itemizing if you have large mortgage interest, state/local taxes (up to $10,000 SALT cap), charitable donations, or medical expenses exceeding 7.5% of AGI.
Retirement Contributions
Contributions to tax-advantaged retirement accounts directly reduce your taxable income for the current year (traditional accounts) or grow tax-free for retirement (Roth accounts).
401(k) / 403(b) / 457: The 2025 employee contribution limit is $23,500 (up from $23,000 in 2024). Workers aged 50+ can contribute an additional $7,500 catch-up contribution. A new "super catch-up" of $11,250 applies for ages 60–63 starting in 2025 under SECURE 2.0.
Traditional IRA: The 2025 contribution limit is $7,000 ($8,000 if age 50+). Contributions are deductible if you (or your spouse) are not covered by a workplace plan, or if income is below the phase-out range. Deductibility phases out between $79,000–$89,000 (Single) and $126,000–$146,000 (MFJ) if covered by a workplace plan.
HSA (Health Savings Account): Contributions are triple tax-advantaged — deductible when contributed, grow tax-free, and are withdrawn tax-free for qualified medical expenses. 2025 limits: $4,300 (self-only HDHP coverage) and $8,550 (family coverage), plus $1,000 catch-up for age 55+.
Healthcare Deductions
Medical and dental expenses that exceed 7.5% of your Adjusted Gross Income (AGI) are deductible if you itemize. For a taxpayer with $60,000 AGI, only expenses above $4,500 are deductible.
Qualifying expenses include: doctor and hospital fees, prescription drugs, dental and vision care, long-term care insurance premiums, and transportation costs for medical care. Cosmetic procedures generally do not qualify.
Self-employed individuals can deduct 100% of health insurance premiums for themselves, spouses, and dependents as an above-the-line deduction — regardless of whether they itemize. This deduction reduces AGI and applies even if total medical expenses don't clear the 7.5% threshold.
Education Credits
Education tax credits directly reduce your tax bill — dollar for dollar — making them more valuable than deductions of the same amount.
American Opportunity Tax Credit (AOTC): Up to $2,500 per eligible student for the first 4 years of higher education. 40% is refundable (up to $1,000). Income phase-out begins at $80,000 MAGI (Single) and $160,000 (MFJ).
Lifetime Learning Credit (LLC): Up to $2,000 per tax return (20% of up to $10,000 in qualified education expenses). No limit on the number of years. Phase-out begins at $80,000 MAGI (Single) and $160,000 (MFJ). Not refundable.
You cannot claim both credits for the same student in the same year. The AOTC generally offers a higher benefit for full-time undergraduates; the LLC is more flexible for part-time students and graduate education.
Charitable Giving
Charitable contributions to qualified 501(c)(3) organizations are deductible if you itemize. The deduction limit depends on the type of contribution and the organization.
Cash donations to public charities: Deductible up to 60% of AGI. Excess can be carried forward for up to 5 years.
Appreciated securities (stocks, funds): Deductible at fair market value up to 30% of AGI. Donating appreciated stock avoids capital gains tax and still gives the full deduction — a powerful strategy for investors.
Non-cash property: Deductible at fair market value, generally limited to 30% of AGI (20% for capital gain property donated to private foundations). Items valued over $500 require Form 8283; over $5,000 requires a qualified appraisal.
A Donor-Advised Fund (DAF) allows you to contribute a lump sum in a high-income year (taking the deduction immediately) and distribute grants to charities over multiple years.
Data Sources
Standard deduction amounts and contribution limits: IRS Revenue Procedures (annual inflation adjustments), IRS Publication 502 (medical), IRS Publication 526 (charitable), IRS Publication 970 (education).
Retirement contribution limits: IRS Notice 2024-80 (2025 amounts), SECURE 2.0 Act (super catch-up provisions).
This page is for informational purposes only. Consult a qualified tax professional for advice specific to your situation.
Frequently Asked Questions
What is the standard deduction for 2025?
The 2025 standard deduction is $15,000 for Single filers, $30,000 for Married Filing Jointly, $15,000 for Married Filing Separately, and $22,500 for Head of Household. Filers aged 65+ or blind receive additional amounts.
Should I take the standard deduction or itemize?
Take the standard deduction unless your itemized deductions (mortgage interest, state/local taxes up to $10,000, charitable contributions, and medical expenses above 7.5% AGI) exceed it. About 87% of taxpayers use the standard deduction since it was nearly doubled by the 2017 Tax Cuts and Jobs Act.
What is the Child Tax Credit for 2025?
The 2025 Child Tax Credit is up to $2,000 per qualifying child under age 17. Up to $1,700 is refundable as the Additional Child Tax Credit (ACTC). The credit begins phasing out at $200,000 MAGI for single filers and $400,000 for married filing jointly.
How much can I contribute to a 401(k) in 2025?
The 2025 employee contribution limit for 401(k), 403(b), and 457 plans is $23,500. Workers aged 50+ can add a $7,500 catch-up contribution. Under SECURE 2.0, workers aged 60–63 qualify for a $11,250 super catch-up contribution starting in 2025.
What is the SALT deduction cap?
The state and local tax (SALT) deduction is capped at $10,000 ($5,000 for married filing separately) through 2025. This cap was introduced by the Tax Cuts and Jobs Act of 2017 and is scheduled to expire after 2025 unless extended by Congress.