“The best way to teach your kids about taxes is by eating 30% of their ice cream.” – Bill Murray
Should I Itemize Or Take The Standard Deduction?: When it comes to filing your taxes, one important decision can significantly impact your return: choosing between itemizing deductions or taking the standard deduction.
Understanding The Basics
The standard deduction is a fixed dollar amount that reduces your taxable income. It’s simple, fast, and doesn’t require detailed records. As of 2025, it ranges from $13,850 for single filers to $27,700 for married couples filing jointly (NerdWallet).
On the other hand, itemizing deductions allows you to list eligible expenses—such as mortgage interest, medical expenses, state and local taxes, and charitable donations. If your total itemized deductions exceed the standard deduction, itemizing could lower your tax bill more significantly (Investopedia).
When To Choose The Standard Deduction
- You have minimal deductible expenses.
- You don’t own a home or have large medical bills.
- You prefer a quick and straightforward filing process.
The majority of taxpayers benefit more from the standard deduction because it’s higher than their itemized total (Forbes).
When To Itemize Deductions
- You paid significant mortgage interest or property taxes.
- You made large charitable contributions.
- You had high out-of-pocket medical expenses.
You can use online calculators, such as Business News Daily’s Standard vs. Itemized Deduction Calculator, to help compare the outcomes.
Special Considerations
Not everyone qualifies for the standard deduction. Non-resident aliens and married individuals filing separately where one spouse itemizes cannot take it (SAG Infotech).
FAQ
What Is The Standard Deduction?
It’s a flat amount that reduces your taxable income, depending on your filing status and age.
When Should I Itemize My Deductions?
You should itemize if your total deductible expenses exceed the standard deduction amount.
Can I Take Both Standard And Itemized Deductions?
No, you must choose one—either the standard deduction or itemized deductions.
What Are Common Itemized Deductions?
Mortgage interest, state and local taxes, medical expenses, and charitable donations.
Who Can’t Take The Standard Deduction?
Certain taxpayers, like non-resident aliens or those filing separately when their spouse itemizes, are ineligible.