by 
The Curious Bag
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<h4 class="dechead">On One Hand: Standard Hanging
Curtain rod hanging depends partly on the style of curtains and how you want them to work with your decor. Lowe's Hardware suggests hanging a curtain rod a few inches above the window casing and so that the curtain falls 2 to 5 inches below the casing. This method ensures that pasersby won't see the edges of the curtains.
On the Other: Design Considerations
While the 2- to 5-inch rule may work, CreativeHomeowner.com recommends slightly more precise measurements for aesthetic reasons. The site advises hanging curtain robs just outside of and above the corners of the window casing for standard draperies. This method avoids exposing too much wall space or having the curtains touch the ceiling.
Bottom Line
Though the experts agree that it is never a good idea to hang a curtain rod directly on a window casing, aesthetic concerns give rise to a difference of opinion as to exactly how far from the casing a rod should be hung. Let your own aesthetic sense be your guide.
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