Recent Updates to the Standard Deduction: What Taxpayers Should Know

Understanding the Standard Deduction — What’s New for 2025 and What Houston Needs to Know

As the 2026 tax season approaches, one of the biggest questions families, individuals, and self-employed workers have is:
“What is the new standard deduction going to be?”

Each year, the IRS adjusts the standard deduction to account for inflation — and these changes can directly affect your refund, your taxable income, and whether itemizing still makes sense.

This updated guide breaks down the new 2025 standard deduction amounts, what they mean for Houston taxpayers, and how the changes may impact your return when you file in early 2026.

What Is the Standard Deduction? (Quick, Simple Explanation)

The standard deduction is a set amount of income you can earn tax-free before the IRS begins calculating what you owe.

Almost 90% of taxpayers take the standard deduction instead of itemizing because:

It’s larger
It’s easier
It requires no receipts

This makes it one of the most important tax benefits for everyday taxpayers.

New Standard Deduction Amounts for the 2025 Tax Year

The IRS adjusts these numbers every year. While the full final 2025 amounts will be confirmed soon, the increases follow the same trend we saw with the 2024 and 2023 tax years.

For the 2025 tax year (filed in 2026), the projected increases are:

Single Filers

➡ Higher than the previous year
➡ Helps offset inflation

Married Filing Jointly

➡ Receives the largest total deduction increase
➡ Especially helpful for families with children

Head of Household

➡ Important for many Houston families, especially single parents
➡ Tends to receive one of the most meaningful adjustments

(Note: Once the IRS publishes the exact final numbers for 2025, we can update this post with the confirmed figures to keep your readers fully accurate.)

How Will This Change Affect Your 2026 Tax Return?

1. Higher Standard Deduction = Lower Taxable Income

More of your income becomes tax-free, and that often means:

A smaller tax bill
A slightly higher refund

2. Fewer People Will Need to Itemize

With higher standard deductions, itemizing becomes beneficial only if your total deductible expenses exceed the new amounts.

3. Better Outcomes for Many Houston Households

Large populations in Houston benefit from the standard deduction:

Families with dependents
Renters
Gig workers
W-2 employees
Seniors
Self-employed individuals

If you don’t have high medical bills, mortgage interest, or charitable deductions, taking the standard deduction will likely remain the best choice.

Standard Deduction for Self-Employed & Small Business Taxpayers

Houston has a high number of self-employed workers — drivers, barbers, stylists, caregivers, cleaners, creators, and contractors.

For you, this update means:

Your standard deduction applies after your business income and expenses
It can help reduce the final tax burden
You still benefit from business deductions plus the standard deduction
It does not replace business write-offs — it helps on the personal side

How the Standard Deduction Works with Tax Brackets

Your standard deduction directly reduces the portion of your income that is taxed.

This works with tax brackets to help you:

Stay in a lower bracket
Pay less tax on your overall income
Possibly increase your refund

To review how brackets work, here’s a clear breakdown:
👉 Understanding the 2024 Tax Bracket Changes
https://mybusinessalternatives.com/tax-pulse/understanding-the-2024-tax-bracket-changes-what-you-need-to-know

Who Benefits Most from This Increase?

Families earning $30k–$120k
Single parents
College students
Seniors receiving Social Security
Gig workers and part-timers
Anyone without large itemizable expenses

Even small increases in the deduction can add up to meaningful savings.

What Houston Taxpayers Should Do Before Filing

✔ Start collecting income documents early

W-2s, 1099-NEC, 1099-K, 1099-INT, and business receipts.

✔ Make sure your address is updated

Houston moves and relocations can delay IRS mail.

✔ If self-employed, double-check your expenses

Accurate mileage, receipts, and logs help reduce taxes before the standard deduction is applied.

✔ Use your secure portal early

Submitting documents early helps avoid last-minute stress.

How My Business Alternatives Helps You Maximize Your Deduction

At My Business Alternatives, I help Houston taxpayers:

Understand changes to the standard deduction
Know whether they should itemize or take the standard deduction
Maximize Schedule C deductions
File accurately and confidently
Receive guidance with IRS notices or verification letters
Get upfront support before filing opens

👉 Join the MBA Family
https://taxportal.mybusinessalternatives.com/

👉 Schedule a Tax Questions Consultation
https://mybusinessalternatives.com/contact

Final Thoughts From My Business Alternatives

My goal is always to help our community understand what is, why it matters, and how to prepare for the upcoming tax season — without any confusion or overwhelm. As the IRS releases updated numbers for 2025, I’ll continue providing clear, verified information to support Houston taxpayers with accuracy and care.