# Standard Deduction

*Taxes — Finicade finance glossary*

The standard deduction is a flat amount subtracted from income that requires no receipts or justification. It exists so most people never have to track deductible expenses at all. Since the US roughly doubled it in 2018, close to 90% of filers take it, which quietly removed the tax benefit of mortgage interest and charitable giving for most households — you only gain from itemising above this threshold.

**Also known as:** standard allowance, personal allowance

**Related terms:** [Itemized Deductions](https://finicade.com/glossary/itemized-deductions), [Taxable Income](https://finicade.com/glossary/taxable-income), [Tax Deduction](https://finicade.com/glossary/tax-deduction), [Filing Status](https://finicade.com/glossary/filing-status), [Adjusted Gross Income (AGI)](https://finicade.com/glossary/adjusted-gross-income)

Source: https://finicade.com/glossary/standard-deduction