Standard Deduction vs. Itemizing
Did you know the IRS automatically gives you a deduction with no additional information required if you use the standard deduction? Have you ever wondered if you could save more by itemizing? One of our most-asked questions from clients is about the difference between the two, so let’s break it down in simple terms.
What is the Standard Deduction?
According to the IRS, “The standard deduction is a specific dollar amount that reduces the amount of taxable income.” Each year, the IRS adjusts the standard deduction for inflation and sets the amounts based on filing status each year.
Here are the standard deduction amounts for 2025:
Single: $15,000
Married filing Joint: $30,000
Head of Household: $22,500
Generally, most normal taxpayers use the standard deduction because their total deductions don’t add up to more than these amounts.
What does it mean to Itemize?
According to the IRS, taxpayers can choose to itemize their deductions when their total allowable deductions is greater than their standard deduction.
Itemizing requires taxpayers to list individual deductible expenses. Some common expenses include:
Mortgage interest
State and local taxes (up to $10,000)
Medical expenses (above 7.5% of your income)
Charitable donations
Which is better, itemizing or taking the standard deduction?
If your total itemized deductions are higher than the standard deduction, itemizing makes sense. Otherwise, take the standard deduction.
For example, if you’re single and your itemized deductions add up to $10,000, the standard deduction ($15,000) saves you more.
However, if your itemized deductions total $16,000, you’d benefit from itemizing instead.
The Bottom Line
For many people, the standard deduction is the easiest and most beneficial option. But if you have significant deductible expenses, itemizing might save you more. Either way, knowing your options helps you make the best choice come tax time.
Still unsure? We’re here to help! Let’s discuss your specific situation and make sure you’re maximizing your tax savings.