Every year you get to choose: take a flat standard deduction, or add up specific expenses and itemize. You pick whichever is larger. For most households the standard deduction wins easily, but not for everyone — and it’s worth knowing which side of the line you’re on before tax season.
What a deduction actually does
A deduction lowers your taxable income, not your tax bill dollar-for-dollar. If you’re in the 22% bracket, an extra $1,000 of deductions saves you about $220. (If brackets feel confusing, our explainer on how tax brackets work clears that up.)
The standard deduction
This is a fixed amount set by law and adjusted for inflation each year. For the 2026 tax year, the IRS amounts are $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household. People 65 and older, or blind, get an additional amount on top. Always confirm current figures on IRS.gov, since they change yearly.
The standard deduction requires no receipts and no extra forms. That simplicity is a real benefit.
Itemized deductions
Itemizing means listing qualifying expenses on Schedule A. The big ones are:
- State and local taxes (SALT): income or sales tax plus property tax, subject to a cap. The cap was raised under the 2025 tax law, with income-based phase-downs for higher earners, so check the current limit for your situation.
- Mortgage interest: on up to $750,000 of acquisition debt for most loans taken out after 2017.
- Charitable donations: to qualified organizations, with documentation.
- Medical and dental expenses: only the portion above 7.5% of your adjusted gross income.
A quick way to check
Grab last year’s numbers and add:
- Mortgage interest from your Form 1098
- Property tax plus state income tax (up to the SALT cap)
- Charitable gifts with receipts
- Medical costs above 7.5% of AGI
If the total beats your standard deduction, itemizing likely saves you money. If it’s close, the standard deduction is usually worth it for the simplicity alone.
Who tends to benefit from itemizing
- Homeowners in their first years of a large mortgage, when interest is highest
- People in high-tax states with significant property and income taxes
- Generous donors
- Households with a year of unusually high medical bills
A newer homeowner who just closed on a big loan may itemize for a few years, then switch back to the standard deduction as the interest portion of each payment shrinks. If you’re considering a refinance, keep in mind it can change your deductible interest too — our refinance guide covers the bigger picture.
“Bunching”: a strategy for people near the line
If your itemized total sits just under the standard deduction, you can sometimes time expenses so they land in alternating years. For example, you might make two years’ worth of charitable gifts in December of one year, itemize that year, and take the standard deduction the next. A donor-advised fund is one tool people use for this. It’s a planning move worth discussing with a tax professional, and it fits naturally with other year-end tax moves.
Deductions you can take either way
Some tax breaks are “above the line,” meaning you get them whether you itemize or not. Examples include contributions to a traditional IRA (if eligible), HSA contributions, student loan interest (within limits), and half of self-employment tax. Don’t skip these just because you’re taking the standard deduction.
Bottom line
Add up your potential itemized deductions and compare them to the standard amount for your filing status. Take whichever is larger. Most tax software does this comparison automatically, but knowing where you stand helps you plan — especially around big life changes like buying a home. For the official rules, see the IRS’s Topic 501 on itemizing vs. the standard deduction.
This is general information, not tax advice. Your situation may differ.
