When you’re filling out your tax return, you may choose to either take the standard deduction or itemize, depending on which option lowers your taxable income the most. The standard deduction is a flat dollar amount set by the IRS that reduces your income with no extra calculations, while itemizing involves listing specific eligible expenses – such as mortgage interest, charitable contributions, and certain medical costs – to potentially claim a larger deduction. Understanding how these two options work – and which makes sense for your situation – can help maximize your refund.
Key considerations when choosing the standard deduction vs. itemized deductions
- Choosing between the standard deduction and itemizing comes down to which option lowers your taxable income more.
- Itemizing may be beneficial if your eligible expenses – like mortgage interest, property taxes, medical bills, and charitable donations – add up to more than the standard deduction.
- Your state tax rules can influence your decision, since some states tie their deductions to your federal filing choice.
- Keeping organized records (receipts, statements, and tax forms) is essential if you plan to itemize.
How does the standard deduction work?
The standard deduction is a certain dollar amount the IRS says you can deduct from your income and it won’t be taxed. Your standard deduction will depend on your filing status, age, whether you have a disability, and if you can be claimed as a dependent.The standard deduction amount increases each year to account for inflation.
Standard deduction amounts for 2025 (returns filed in 2026)
| Filing Status | Deduction Amount |
| Single / Married Filing Separately | $15,750 |
| Married Filing Jointly / Surviving Spouse | $31,500 |
| Head of Household | $23,625 |
How does itemizing work?
Some people find that by claiming individual “itemized” deductions, they can lower their taxable income even more than the standard deduction would. Itemized deductions are certain expenses that the IRS allows you to claim on your return. To itemize, you’ll list these eligible expenses on Schedule A of your tax return and add them together to calculate your total deduction. That total then replaces the standard deduction on your return.
Examples of itemized deductions
- State and local taxes
- Mortgage interest
- Charitable donations
- Medical expenses
- Casualty and theft expenses
What do you need to itemize deductions?
If you choose to itemize deductions, it’s important to keep clear, organized records of your expenses. This includes things like receipts, invoices, and bank or credit card statements that show what you paid for items like medical bills or charitable donations. If you own a home, you’ll also want documents like your mortgage interest statement (Form 1098) and property tax records. Other helpful forms might include paperwork for student loan interest or retirement contributions. If you didn’t itemize this year but want to next year, start early by saving your receipts, keeping all tax-related documents in one place, and reviewing which expenses qualify so you’re prepared when it’s time to file.
When should you itemize deductions, and when should you take the standard deduction?
Deciding whether to itemize deductions or take the standard deduction comes down to which option gives you the greater total deduction. Almost everyone is eligible to take the standard deduction, but not everyone can take advantage of itemized deductions. In general, you may benefit from itemizing if your deductible expenses add up to more than the standard deduction for your filing status; otherwise, the standard deduction may be the simpler and more valuable choice. To help guide your decision, consider questions like:
- Do my total deductible expenses (mortgage interest, property taxes, medical costs, donations, etc.) exceed the standard deduction?
- Do I have large one-time expenses this year (such as major medical bills or significant charitable contributions)?
- Will itemizing on my federal return affect my state tax situation?
- Do I have the documentation needed to support all my deductions?
For example, if the standard deduction is $13,850 and your total itemized deductions equal $12,500, taking the standard deduction would generally result in a larger reduction of taxable income. However, if your itemized deductions total $15,000, itemizing could lower your taxable income more than the standard deduction. Reviewing your numbers side by side can help you understand which option may offer the greater benefit for your situation.
How could state tax laws impact itemizing or taking the standard deduction?
State tax laws play a role in whether it makes sense to itemize deductions or take the standard deduction on your federal return. Many states either require you to follow your federal choice or tie their own itemized deductions to what you claim federally, so opting for the standard deduction at the federal level could limit your ability to itemize on your state return. Also, differences in state tax structures, such as high property taxes or the absence of an income tax, can affect how valuable certain deductions are, including the federally capped state and local tax (SALT) deduction. In some cases, taxpayers may benefit from itemizing even if it only slightly exceeds the standard deduction, because it unlocks larger savings at the state level.
