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Taxes

Standard vs Itemized Deductions: Pick the Bigger Number

Most people should take the standard. Here is how to be sure.

Every tax filer gets to choose between the standard deduction (a flat amount based on filing status) and itemizing (adding up your actual deductions). The math is simple: pick whichever is bigger. After the 2017 tax law roughly doubled the standard deduction, the answer for ~90% of filers is "take the standard."

Standard deduction amounts (2026)

  • Single: ~$15,000
  • Married filing jointly: ~$30,000
  • Head of household: ~$22,500

You take this off the top of your gross income, no documentation required. No receipts, no records.

When itemizing might beat it

You can itemize using Schedule A. The main itemized deductions:

  • State and local taxes (SALT) - capped at $10,000.
  • Mortgage interest on up to $750,000 of principal.
  • Charitable contributions to qualifying organizations.
  • Medical expenses that exceed 7.5% of your AGI.

If those add up to more than the standard deduction, itemize. Otherwise, take the standard.

Who is most likely to itemize

  • Homeowners with significant mortgage interest in high-tax states (a $300K+ mortgage in a state with high property tax often clears the bar).
  • Households with large charitable giving relative to income.
  • People with major medical bills.

Bunching deductions: a real strategy

If you are close to the line, "bunch" two years of charitable giving into one - e.g., give December 2025 and January 2026 contributions all in 2025. That year you itemize and clear the standard; the next year you take the standard. Over two years, you deduct more.

Things that are NOT itemized deductions

Common confusions:

  • Student loan interest - separate "above-the-line" deduction, take it either way.
  • HSA contributions - separate above-the-line deduction.
  • Traditional IRA contributions - separate above-the-line deduction (if you qualify).
  • Self-employment business expenses - go on Schedule C, not Schedule A.

You can take the standard deduction AND all of the above. They are not in competition.

Bottom line

Run both numbers if you are close. Most tax software does this automatically. If you are a renter without major charitable contributions, you almost certainly should take the standard deduction and stop second-guessing.


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