Can I deduct business expenses if I take the standard deduction?

Yes. The standard deduction applies to your personal Form 1040. Business expenses are deducted separately on Schedule C or your entity return and are completely unaffected by the personal standard deduction.

Is the enhanced senior deduction available even if I don't itemize?

Yes. The enhanced senior deduction (up to $6,000 per eligible senior) is available to those who take the standard deduction, subject to a MAGI phase-out — a notable departure from deductions that historically required itemizing.

Should I still itemize in 2026?

Only if your total itemized deductions exceed your standard deduction ($16,100 single / $32,200 MFJ). With the higher 2026 amounts, fewer taxpayers benefit from itemizing — run both calculations before deciding.

Which standard deduction do I use on the return I file in spring 2026?

The 2025 amounts, not the 2026 ones. The standard deduction is set by tax year, so returns filed in spring 2026 cover tax year 2025 and use the 2025 figures. The 2026 amounts ($16,100 single / $32,200 MFJ) apply to returns filed beginning January 2027.

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Individual Tax Preparation

The 2026 Standard Deduction: Updated Amounts and What They Mean

The IRS released inflation-adjusted standard deduction amounts for 2026. Combined with enhanced senior deductions, the changes reduce itemization needs for most households — but business owners shouldn't conflate the personal and business sides.

SMAART Tax Team

March 4, 2026

4 min read

|Reviewed by Anthony Gonzalez, Enrolled Agent