You have the choice to take a “Standard Deduction” (a flat dollar amount) or to “Itemize” (list actual expenses). You should choose whichever method lowers your tax the most.
Standard Deduction Amounts (2025)
Most taxpayers take the standard deduction because it is easier and often worth more than their itemized expenses.
- Single or Married Filing Separately: $15,750
- Married Filing Jointly or Qualifying Surviving Spouse: $31,500
- Head of Household: $23,625
- Age 65+ or Blind: You get an additional deduction of $1,600 (if married) or $2,000 (if single/HOH).
When Should You Itemize? (Schedule A)
You should only itemize if your total allowable expenses are higher than your standard deduction. Common itemized deductions include:
- Medical Expenses: Only the amount that exceeds 7.5% of your Adjusted Gross Income (AGI).
- State and Local Taxes (SALT): Up to $10,000 combined for state/local income tax (or sales tax) and property tax. Note: Legislation may temporarily increase this cap for certain years.
- Mortgage Interest: Interest on up to $750,000 of home mortgage debt (for homes bought after Dec 15, 2017).
- Charitable Contributions: Donations to qualified non-profit organizations.
Official Instructions:Schedule A (Form 1040) Instructions