Standard tax deduction amounts for the 2016 year. You can claim the standard deduction or you can itemize your deductions, but you can't do both. Subtract your standard deduction from your adjusted gross income, or AGI, which reduces your taxable income. Choose the method that results in the lowest tax. Most taxpayers claim the standard deduction amount. The amounts are adjusted each tax year for inflation. 2016 standard deduction for taxpayers younger than 65.