The Standard Deduction is a specific dollar amount that reduces the income on which you are taxed. It simplifies the tax filing process by allowing taxpayers to deduct this fixed amount from their total income instead of itemizing individual deductions. The amount varies based on filing status, such as single, married filing jointly, or head of household. For the tax year 2023, the Standard Deduction amounts are $13,850 for single filers, $27,700 for married filing jointly, and $20,800 for head of household. Taxpayers can choose to take the Standard Deduction or itemize their deductions, whichever results in a lower tax bill.