Meaning & use
standard deduction
Last updated
Meaning
nouncountablefinance
A fixed amount that a taxpayer may subtract from their income before tax is calculated, instead of listing individual expenses.
Grammar: Usually singular with 'the': take the standard deduction.
Patterns
- take the standard deduction
- the standard deduction for something
Most households take the standard deduction because it is simpler.
The standard deduction rose slightly this year.
She chose the standard deduction instead of listing every expense.
Word forms
| plural | standard deductions |
|---|
Common combinations
- claim the standard deduction
- You can claim the standard deduction without receipts.
- take the standard deduction
- We took the standard deduction this year.
- increase the standard deduction
- Lawmakers voted to increase the standard deduction.
- standard deduction amount
- The standard deduction amount depends on filing status.
Synonyms and how they differ
Opposites
Word family
- deduct verb
- to subtract an amount
- deductible adjective
- able to be subtracted from taxable income
Commonly confused: standard deduction or tax credit?
standard deduction vs tax credit
A credit lowers the tax you owe directly; a deduction lowers the income that is taxed.
Practice
What does choosing the standard deduction mean?
Choose one answer.
The standard deduction is a set amount. Listing each expense is itemizing, which is the alternative.
Make it your own
Write a sentence using “standard deduction”, then check it and compare it with the examples above.