Standard Deduction vs. Itemizing: Which Is Right for You?

The Basics

Every taxpayer has a choice: take the standard deduction or itemize their deductions. The right choice depends on your individual circumstances.

2025 Standard Deduction Amounts

• Single: $15,750
• Married Filing Jointly: $31,500
• Head of Household: $23,625
• Married Filing Separately: $15,750

When to Itemize

You should consider itemizing if your total itemized deductions exceed your standard deduction. Common itemized deductions include:

State and Local Taxes (SALT)

• State and local income taxes OR state and local sales taxes
• Real estate taxes
• Personal property taxes
• Limited to $10,000 total ($5,000 if married filing separately)

Mortgage Interest

• Interest on up to $750,000 of mortgage debt
• Can be a significant deduction for homeowners

Charitable Contributions

• Cash donations to qualified organizations
• Non-cash donations (clothing, household items, etc.)
• Must have documentation for all contributions

Medical Expenses

• Expenses exceeding 7.5% of your adjusted gross income
• Includes insurance premiums, prescriptions, and medical care

New Deductions for 2025

Recent legislation provides four new deductions available whether you itemize or not:

• No tax on tips
• Check Schedule 1-A (Form 1040) for eligibility

Our Recommendation

Let our team analyze your situation. We'll calculate both methods and ensure you're taking the approach that saves you the most money.