Five Year History of the Standard Deduction

Share:

The standard deduction is the basic tax break that all taxpayers get, as long as they fall under a certain income limit.  Specifically, the standard deduction is the amount you can subtract from your income before it is taxed.  The government provides this as a sort of “tax break.”  The amount of your standard deduction depends on your taxpayer filing status, your age, and whether you are disabled or claimed as a dependent on someone else’s tax return.  As you can see from the tables below, the largest portion of your deduction comes automatically and depends on your filing status.

2010 Standard Deductions

Filing Status
Standard Deduction
Increase from Previous Year
Single
$5,700
0%
Head of Household
$8,400
1%
Married Filing Jointly
$11,400
0%
Married Filing Separately
$5,700
0%
Qualifying Widow/Widower
$11,400
0%
Dependent
$950 - $5,700
0%
Additional Amount if Blind or Age 65 or Older - Married
$1,100
0%
Additional Amount if Blind or Age 65 or
Older - Unmarried/Head of Household
$1,400
0%
Phaseout of Itemized Deductions - Married Filing Separately
$83,400
0%
Phaseout of Itemized Deductions - Everyone Else
$166,800
0%

2009 Standard Deductions

Filing Status
Standard Deduction
Increase from Previous Year
Single
$5,700
4%
Head of Household
$8,350
4%
Married Filing Jointly
$11,400
4%
Married Filing Separately
$5,700
4%
Qualifying Widow/Widower
$11,400
4%
Dependent
$950 - $5,700
4%
Additional Amount if Blind or Age 65 or Older - Married
$1,100
5%
Additional Amount if Blind or Age 65 or
Older - Unmarried/Head of Household
$1,400
4%
Phaseout of Itemized Deductions - Married Filing Separately
$83,400
4%
Phaseout of Itemized Deductions - Everyone Else
$166,800
4%

2008 Standard Deductions

Filing Status
Standard Deduction
Increase from Previous Year
Single
$5,450
2%
Head of Household
$8,000
2%
Married Filing Jointly
$10,900
2%
Married Filing Separately
$5,5,450
2%
Qualifying Widow/Widower
$10,900
2%
Dependent
$900 - $5,450
2%
Additional Amount if Blind or Age 65 or Older - Married
$1,050
0%
Additional Amount if Blind or Age 65 or
Older - Unmarried/Head of Household
$1,350
4%
Phaseout of Itemized Deductions - Married Filing Separately
$79,975
2%
Phaseout of Itemized Deductions - Everyone Else
$159,950
2%

2007 Standard Deductions

Filing Status
Standard Deduction
Increase from Previous Year
Single
$5,350
4%
Head of Household
$7,850
4%
Married Filing Jointly
$10,700
4%
Married Filing Separately
$5,350
4%
Qualifying Widow/Widower
$10,700
4%
Dependent
$850 - $5,350
4%
Additional Amount if Blind or Age 65 or Older - Married
$1,050
5%
Additional Amount if Blind or Age 65 or
Older - Unmarried/Head of Household
$1,300
4%
Phaseout of Itemized Deductions - Married Filing Separately
$78,200
4%
Phaseout of Itemized Deductions - Everyone Else
$156,400
4%

2006 Standard Deductions

Filing Status
Standard Deduction
Single
$5,150
Head of Household
$7,550
Married Filing Jointly
$10,300
Married Filing Separately
$5,150
Qualifying Widow/Widower
$10,300
Dependent
$850 - $5,150
Additional Amount if Blind or Age 65 or Older - Married
$1,000
Additional Amount if Blind or Age 65 or
Older - Unmarried/Head of Household
$1,250
Phaseout of Itemized Deductions - Married Filing Separately
$75,250
Phaseout of Itemized Deductions - Everyone Else
$150,500

In some cases, it might be better to opt for itemized deductions instead of the standard deduction.  While taking the standard deduction is certainly less complicated than itemizing your deductions, it might not be cheaper.  If you have a lot of itemized deductions—large charitable contributions, mortgage interest, etc.—you might reduce your taxable income by itemizing deductions.  If after itemizing your deductions the amount is less than the standard deduction, obviously just take the standard route.

The IRS determines the standard deduction figures each year and must account for inflation—rising prices of goods and services.  As you can see, from 2006 to 2010 the standard deduction amounts usually fluctuated year to year.  Only in 2009 did the amounts remain the same as the previous year.  Over that five year period, the standard deductions increased 10% practically across the board.  If history is any indication of the future, you might expect next year’s standard deductions to increase by at least a couple percentage points.

Published or Updated: March 16, 2013
About Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

Comments

  1. Frank says:

    Five year history, why not list the 2011 tax year?
    Also, are there not increases to the standard deduction depending on type of worker, and age and disability?

Speak Your Mind

*