Now that the standard deduction increased does that allow me to convert more dollars from an IRA to a Roth and not incur as much tax liability?

[Jennifer_A · Accepted solution]

Yes, it is possible that your tax liability on converting from a IRA to an Roth would be lower.  Lets look at it step by step.

Taxable event: Converting funds from a IRA to a Roth is taxable in that funds that were previously income tax deferred are now subject to income tax.   So the converted funds would be reported as income on the Form 1040.

Standard Deduction: After all income is calculated on Form 1040, also know as Adjusted Gross Income, one can itemize their deduction or take the standard deduction.  The 2025 standard deduction is:

• Single or Married Filing Separately: $15,750
• Married Filing Jointly: $31,500
• Head of Household: $23,625 

Taxable Income:  Total Income reduced by the Standard Deduction brings us to the Taxable Income at which time the income tax will be calculated based upon your filing status: single, married filing joint, married filing separate, head of household, qualifying surviving spouse.

I hope this helps.

[rolfarber]

Was the 2024 standard deduction $10,000 or was it something else?

[Cindy4 · Accepted solution]

The standard deduction for the 2024 tax year (which you would have filed in early 2025) is as follows:

Single or Married Filing Separately: $14,600

Married Filing Jointly or Qualifying Surviving Spouse: $29,200

Head of Household: $21,900

Additional standard deductions are available for those who are 65 or older or blind. For 2024, the additional amounts are:

Single or Head of Household: $1,950Married Filing Jointly or Qualifying Surviving Spouse: $1,550 (per qualifying person

Here are the standard deduction amounts for 2025:

Single or Married Filing Separately: $15,750

Married Filing Jointly or Qualifying Surviving Spouse: $31,500

Head of Household: $23,625

Additional Deductions for Seniors and the Blind

For taxpayers who are 65 or older or blind, there are additional standard deductions.

For single filers: $2,000 (if 65+ or blind), or $4,000 (if 65+ and blind)

For married filers: $1,600 (per qualifying person)

Additionally, the new "One Big Beautiful Bill Act" introduced a new temporary "bonus" deduction for seniors. If you are 65 or older by the end of 2025, you may be eligible for an additional $6,000 deduction ($12,000 for a married couple both 65 or older) if your Modified Adjusted Gross Income (MAGI) is below a certain threshold. This bonus deduction begins to phase out for single filers with MAGI over $75,000 and for married couples with MAGI over $150,000.