Every filer subtracts either the standard deduction or their itemized deductions from income — you take whichever is larger, but not both. For most people since 2018, the standard deduction wins by a wide margin. Knowing which camp you fall into can save you hours of receipt-hunting or hundreds of dollars in missed write-offs.

How the standard deduction works

The standard deduction is a flat amount you subtract from income with no documentation required. For 2025 it is roughly $15,750 for single filers and about $31,500 for married couples filing jointly, with an extra amount for taxpayers who are 65 or older or blind. The figure is adjusted for inflation each year. Because it is guaranteed and effortless, it sets the bar your itemized deductions must clear to be worthwhile.

What itemizing includes

Itemizing means listing specific deductible expenses on Schedule A, then deducting the total. The main categories are mortgage interest, state and local taxes — subject to a federal cap that recent law raised to $40,000 for 2025, up from $10,000, with a phase-down for very high earners — charitable contributions, and medical expenses above a percentage-of-income floor. You itemize only if these add up to more than your standard deduction. Homeowners with large mortgages and high state taxes are the most common itemizers.

Choosing between them

The rule is simple: add up your itemizable expenses and compare the total to your standard deduction, then take the larger. Since the standard deduction nearly doubled in 2018, the large majority of filers now take it. Itemizing tends to make sense for homeowners in high-tax states, people with big charitable gifts, or those with unusually high medical bills in a year. Tax software checks both automatically, but knowing the categories helps you plan.

Bunching to beat the threshold

If your itemized total lands just under the standard deduction, a strategy called bunching can help. You concentrate deductible expenses — like two years of charitable donations or elective medical procedures — into a single year so you clear the itemizing threshold, then take the standard deduction the next year. A donor-advised fund is a common tool for bunching charitable gifts. Alternating years can produce more total deductions than spreading the same spending evenly.

A married couple has $9,000 of mortgage interest, $8,000 of state and local taxes, and $2,000 in charitable gifts, totaling about $19,000. Since that is below the roughly $31,500 standard deduction for 2025, they take the standard deduction and skip the paperwork.

Key takeaways

  • You take either the standard deduction or itemized deductions, whichever is larger.
  • The standard deduction is a flat, no-paperwork amount adjusted yearly for inflation.
  • Itemizing covers mortgage interest, capped state and local taxes, charity, and large medical costs.
  • Most filers now take the standard deduction after it nearly doubled in 2018.
  • Bunching deductions into alternating years can push you over the itemizing threshold.

Common mistakes

FAQ

Can I switch between standard and itemized each year?

Yes. You choose whichever is larger every year, and your choice can change as your expenses change.

Do charitable donations help if I take the standard deduction?

Generally no — charitable gifts only reduce your tax if you itemize, so they add value only when your itemized total exceeds the standard deduction.