Standard Deduction vs. Itemized Deductions

A deduction is something the IRS offers to help maximize your refund or reduce your liability. It is an amount you can subtract from your Adjusted Gross Income to reduce the overall income subject to taxation. There are two types of deductions, the standard deduction and itemized deductions. In this article, we will go over the standard deduction vs. itemized deductions to determine which is best for you.

Standard Deduction

The standard deduction is a fixed dollar amount that reduces your total taxable income. It is based on your filing status. For 2025 the standard deductions are as follows:

• Single or married filing separately-$15,750
• Married filing jointly-$31,500
• Head of Household-$23,625

This is the most common deduction to take as it is rather substantial. It will allow you to reduce your income even if you do not have any qualifying expenses.

Itemized Deductions

Itemized deductions are determined by adding up all qualifying deductions and subtracting them from your Adjusted Gross Income. Some common deductions include:

• Theft and casualty losses from a federally declared disaster
• Charitable deductions
• State and Local Taxes
• Gambling losses (but only to the extent of gambling winning reported on your tax return).
• Home mortgage interest
• Unreimbursed medical and dental expenses (must be greater than 7.5% of your AGI)

Which Deduction Should I Take?

When it comes to the standard deduction vs. itemized deductions, you’re probably wondering what’s best for you. To figure it out, you first will need to calculate your total itemized deductions. Compare that aggregate amount to the standard deduction for your filing status. Whichever is greater is the one you should use.

Still not sure? Contact a tax professional who can help you analyze your situation.