2025 Standard Deduction: What You Need to Know

Tax season might not be your favorite time of year, but if you're self-employed, a freelancer, or just someone who wants to keep more of what they earn, the standard deduction is a good place to start.

Let’s break it all down: what the standard deduction is, what’s changing in 2025, and how tools like Everlance can make it a breeze to take advantage of every dollar.

What Is the Standard Deduction?

The standard deduction is a set amount that the IRS lets you subtract from your taxable income. It lowers the amount of income you pay taxes on, which means you get to keep more in your pocket.

Instead of itemizing every expense, most people take the standard deduction because it's easier, faster, and (thanks to recent increases) more beneficial for the majority of taxpayers.

Here’s what the IRS has announced for the 2025 tax year:

These are all up from 2024, adjusted for inflation, so your deduction is keeping pace with rising costs.

Extra Deductions for Seniors and the Blind

If you're age 65 or older or legally blind, the IRS gives you a little more breathing room. Here’s how much more you can deduct:

• Single or Head of Household: Add $1,600
• Married Filing Jointly: Add $1,300 per eligible person

Example: A married couple where both spouses are over 65 could take up to $32,600 as their standard deduction.

What If You're Claimed as a Dependent?

If someone else claims you as a dependent, your standard deduction for 2025 is the greater of:

• $1,350, or
• Your earned income plus $450 (up to the standard deduction for your filing status)

This is common for college students or young workers still listed as dependents on their parents’ returns.

Should You Itemize or Take the Standard Deduction?

For most people, the standard deduction is the better deal. It means fewer forms, less math, and in many cases, a larger deduction.

However, if you:

• Have high mortgage interest
• Gave large charitable donations
• Paid significant medical expenses
• Paid state/local taxes over the limit

...then itemizing might give you a bigger tax break.

But here’s the deal: if you’re a freelancer, gig worker, or small business owner, you can still deduct your business expenses even if you take the standard deduction. That’s a common misconception and where Everlance comes in.

Mileage, Expenses, and the Standard Deduction

The standard deduction is for your personal taxes. Business expenses, like mileage, supplies, and subscriptions, are deducted separately.

So even if you take the standard deduction, you can still write off:

• Business miles driven
• Your phone bill (if used for work)
• Equipment and supplies
• Part of your home office

Tracking those expenses throughout the year helps you maximize your tax refund or lower your tax bill especially if you’re earning self-employed income.

Whether you’re filing taxes on your own or with an accountant, having everything organized makes life a lot easier. Everlance helps you stop stressing and start saving.

The standard deduction for 2025 is higher than ever and that’s good news. It means less taxable income, a simpler return, and more money back in your wallet.

Just remember: the standard deduction doesn’t replace your business deductions. If you drive for work, buy tools for your trade, or use your phone for business, you should be tracking it and Everlance is here to help.