Standard Deduction vs. Itemizing
When filing your tax return [blocked], you choose between two options:
- Standard deduction: A fixed amount based on your filing status
- Itemized deductions [blocked]: The total of your individual deductible expenses
You should choose whichever is larger, as it reduces more of your taxable income.
2026 Standard Deduction Amounts
| Filing Status | Standard Deduction |
|---|---|
| Single | $15,000 |
| Married Filing Jointly | $30,000 |
| Married Filing Separately | $15,000 |
| Head of Household | $22,500 |
| Additional (age 65+ or blind) | $1,550-$1,950 extra |
Common Itemized Deductions
To itemize, you add up all qualifying expenses on Schedule A:
Medical and Dental Expenses
Only the amount exceeding 7.5% of your adjusted gross income (AGI) is deductible. If your AGI is $80,000, only medical expenses above $6,000 count.
State and Local Taxes (SALT)
Includes state income tax [blocked] (or sales tax) plus property tax, capped at $10,000 total.
Mortgage Interest
Interest on mortgage debt up to $750,000 for loans taken after December 15, 2017.
Charitable Contributions
Cash donations up to 60% of AGI. Non-cash donations (clothing, household items) at fair market value.
Casualty and Theft Losses
Only from federally declared disasters, and only the amount exceeding 10% of AGI.
When to Itemize
Itemizing typically makes sense if you have:
- A large mortgage with significant interest payments
- High state and local taxes (though capped at $10,000)
- Substantial charitable giving
- Large unreimbursed medical expenses
Quick Test
Add up your potential itemized deductions. If the total exceeds your standard deduction, itemize. If not, take the standard deduction.
The Bunching Strategy
If your itemized deductions are close to the standard deduction, consider bunching — concentrating deductible expenses into alternating years.
Example: Instead of donating $8,000 each year, donate $16,000 every other year. In the bunching year, your itemized deductions exceed the standard deduction. In the off year, take the standard deduction.
Key Takeaways
- Choose whichever deduction method gives you the larger amount
- About 87% of taxpayers take the standard deduction since the 2017 tax reform
- Itemizing mainly benefits those with large mortgages, high state taxes, or significant charitable giving
- The bunching strategy can help borderline cases maximize deductions
- Keep records of all potential deductions even if you expect to take the standard deduction