Standard Deduction vs. Itemized Deductions: Which Is Right for You?

As you begin the process of filing your federal income tax return, an important early step is deciding how you will reduce your taxable income.

You must choose between claiming a fixed standard deduction or listing eligible expenses through itemized deductions, and that decision can meaningfully influence your final tax bill or refund.

Taking the time to understand the differences between these two approaches, and how they apply to your specific financial situation, can help ensure you select the option that provides the greatest benefit.

What is the Standard Deduction?

The standard deduction is a fixed amount that most taxpayers can subtract from their income to reduce taxable income. It varies by filing status and is adjusted annually for inflation. In some years, changes in tax law can also increase these amounts beyond normal inflation adjustments.

The standard deduction simplifies tax preparation because you don’t need to track individual deductible expenses. However, if your total deductible expenses (itemized deductions) exceed the standard deduction, itemizing could lower your taxable income further.

Standard Deduction Amounts (2024, 2025, and 2026)

Below are the standard deduction amounts for recent and upcoming tax years (federal returns):

Who Gets Extra Standard Deduction?

Taxpayers who are age 65 or older or blind generally qualify for an additional standard deduction amount each year. For example, for tax year 2025 and 2026, this additional deduction is available on top of the base standard deduction (e.g., $2,000 or more depending on filing status).

Additionally, new temporary provisions effective for tax year 2025–2028 may allow a bonus deduction of up to $6,000 (or $12,000 for married couples where both spouses qualify) for seniors — on top of the standard and age/blind additional amounts — subject to income phaseouts.

Some taxpayers (e.g., dependents of another taxpayer) have a different, lower standard deduction amount based on earned income plus a base amount.

Standard Deduction vs. Itemized Deductions

Standard Deduction

✔ Simple and quick — no tracking of expenses
✔ Often the best choice for taxpayers with limited deductible expenses
✔ Increased annually for inflation

Itemized Deductions

✔ May be better if total deductible expenses exceed the standard deduction
✔ Includes expenses like:

• Mortgage interest
• State and local income, sales, and property taxes (SALT) - now with higher limits under recent law
• Medical and dental expenses (subject to thresholds)
• Charitable contributions

For many taxpayers, itemizing can pay off only if total itemized amounts exceed the standard deduction for your filing status. Because documenting and calculating itemized deductions takes more time and records, many people still elect the standard deduction unless they have large eligible expenses.

Comparison of Key Itemized Deductions (2024, 2025, and 2026)

Here is a comparison of key itemized deduction rules and changes for tax years 2024, 2025, and 2026 (federal returns):

Key Takeaways (2025 & 2026)

• The standard deduction continues to rise each year with IRS inflation adjustments.
• Seniors and the visually impaired can claim additional standard deductions, and new bonus provisions may apply through 2028.
• Compare your potential itemized deductions to the standard deduction to decide which saves more tax.
• For tax year 2025, itemizers may be able to deduct up to $40,000 in SALT (including property taxes) if they qualify, a significant increase over past years.

Tax laws can change, and deduction amounts may be updated further each fall. It’s a good idea to work with a tax professional or use reputable tax software to make sure you’re choosing the option that gives you the best outcome on your return.

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