Standard vs. itemized: which should you pick?
Think of the standard deduction as the easy button. It's a flat amount the IRS lets you subtract from your income. For 2025, it's $29,200 if you're married filing jointly, $14,600 if you're single, $14,600 if you're married filing separately, and $21,900 for head of household. If you're 65 or older or legally blind, you get a little extra.
Itemizing is the "list it out" option. You add up certain expenses like:
- SALT, which stands for state and local taxes. That includes state or local income or sales tax, plus property and car tax based on value. All of that is capped at $10,000 total.
- Mortgage interest
- Charitable donations
- Medical costs, but only the part over 7.5% of your income
How to decide fast: add up your itemized stuff. If that total is bigger than your standard deduction, itemize. If not, take the standard deduction. That's it.
A few quick examples:
- Single renter who gave a few hundred to charity: standard wins.
- Married homeowners with a decent mortgage and regular donations: itemizing might win.
- No mortgage and average expenses: standard usually wins.
- Huge medical year: maybe itemize, but only if those costs push you over the line.
What to remember:
- SALT (state and local taxes). It's capped at $10,000 total. Paying more doesn't increase your deduction.
- You can't take both standard and itemized. You pick one.
- If you're close, plan ahead. Bunch donations into one year or group medical costs in one year if it makes sense.
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