Standard Deduction Amounts

2025: $15,000 single, $30,000 married filing jointly, $22,500 head of household 2026: amounts are indexed for inflation — check IRS.gov for updated figures Additional $1,550+ for those 65 or older or blind (varies by filing status) Roughly 90% of filers now take the standard deduction after the 2017 TCJA changes

The original $10,000 SALT cap (now raised to $40,000) reduced itemizing value for many Nearly doubled standard deduction made it harder for itemized totals to exceed it Eliminated miscellaneous deductions like tax prep fees and employee expenses Key TCJA provisions were made permanent by the One Big Beautiful Bill Act

Itemized vs Standard Deduction

What Qualifies as Itemized Deductions

State and local taxes (SALT) — income or sales tax plus property tax, capped at $40,000
Mortgage interest on up to $750,000 of acquisition debt
Charitable contributions to qualified organizations — cash and non-cash
Medical and dental expenses exceeding 7.5% of adjusted gross income

Impact of the TCJA

The original $10,000 SALT cap (now raised to $40,000) reduced itemizing value for many
Nearly doubled standard deduction made it harder for itemized totals to exceed it
Eliminated miscellaneous deductions like tax prep fees and employee expenses
Key TCJA provisions were made permanent by the One Big Beautiful Bill Act

When Itemizing Makes Sense

Your combined SALT, mortgage interest, and giving exceed the standard deduction
You had large unreimbursed medical expenses in a given year
You made substantial charitable donations — especially appreciated stock
You live in a high-tax state with a large mortgage, even with the SALT cap

The Bunching Strategy

Concentrate two or more years of charitable giving into one year to exceed threshold
In alternate years, take the standard deduction when itemized totals fall below it
Donor-advised funds facilitate bunching — contribute a lump sum, distribute over time
Bunching works for any timing-flexible deduction, including elective medical costs

State Tax and Filing Status Considerations

Some states require you to itemize at the state level if you itemize federally
The $40,000 SALT cap applies to the combined total of state income tax and property tax
If one spouse itemizes on MFS, the other must also itemize — cannot mix methods
States with no income tax reduce your SALT deduction to property tax only

Above-the-Line Deductions and Planning Tips

Above-the-line deductions reduce AGI regardless of whether you itemize
Examples: HSA contributions, student loan interest, self-employed health insurance
Run the numbers both ways each year — your optimal choice can change annually
Track deductible expenses throughout the year rather than estimating at tax time
Review your situation when tax laws change — the optimal choice can shift significantly

Standard Deduction Amounts

What Qualifies as Itemized Deductions

Impact of the TCJA

When Itemizing Makes Sense

The Bunching Strategy

State Tax and Filing Status Considerations

Above-the-Line Deductions and Planning Tips

Related Topics

Bunching Charitable Deductions

Primary Residence Tax Benefits

Charitable Deduction Rules

Standard Deduction Amounts

What Qualifies as Itemized Deductions

Impact of the TCJA

When Itemizing Makes Sense

The Bunching Strategy

State Tax and Filing Status Considerations

Above-the-Line Deductions and Planning Tips

Related Topics

Bunching Charitable Deductions

Primary Residence Tax Benefits

Charitable Deduction Rules