What is the Standard Deduction for self-employed individuals in 2025?

The Standard Deduction reduces your taxable income automatically — no receipts required. For 2025, the amounts are: - **Single:** $15,000 - **Married Filing Jointly (MFJ):** $30,000 - **Head of Household:** $22,500 - **Married Filing Separately:** $15,000 - **Additional for age 65+ or blind:** $1,600 (single) / $1,350 (MFJ, per qualifying person) The Standard Deduction applies after your above-the-line deductions (SE Tax half, health insurance, retirement contributions) have already reduced your AGI. It is not a Schedule C deduction — it reduces your personal taxable income on your 1040. For most self-employed individuals, the Standard Deduction is larger than itemized deductions (SALT, mortgage interest, charitable giving), making it the better choice. Only itemize if your qualifying deductions exceed the Standard Deduction. Under OBBBA 2025 (One Big Beautiful Budget Act), the standard deduction was increased and indexed for inflation.

  • 2025 Standard Deduction: $15,000 (single) / $30,000 (MFJ)
  • Applied after above-the-line deductions reduce your AGI
  • Most self-employed individuals are better off with Standard Deduction
  • Itemize only if total itemized deductions exceed the standard amount
  • SALT deduction cap may limit itemizing value for high-income earners

Related Questions

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