The Standard Deduction is a good thing. Everyone gets to take either the Standard Deduction or their itemized deductions whichever is higher. Itemized deductions are things like Medical, Gifts to Charity, State Income Taxes Paid, Mortgage Interest, Property Taxes, Car registration fees, etc. To itemize your deductions you use Schedule A.
It is subtracted from your income before you pay tax. So you get taxed on a lower amount. The Standard Deduction is 12,950. It means the first 12,950 of income is tax free.
For 2022 the standard deduction amounts are:
Single 12,950 + 1,750 for 65 and over or blind (14,700)
HOH 19,400 + 1,750 for 65 and over or blind (21,150)
Joint 25,900 + 1,400 for each 65 and over or blind (27,300/28,700)
Married filing Separate 12,950 + 1,400 for 65 and over or blind (14.350)
Or if you are filing as Married Filing Separately and your spouse itemizes then you have to also itemize even if it is less than the Standard Deduction even if it is zero. If you are a dependent your Standard Deduction might be less.
