When you file taxes, you choose one: the standard deduction (a flat amount) or itemized deductions (actual expenses). You take whichever is larger — but you have to know which that is.
2025 Standard Deduction Amounts
- •Single: $15,000
- •Married Filing Jointly: $30,000
- •Head of Household: $22,500
- •Additional for 65+ or blind: $1,600 (single) / $1,300 (married)
- •About 90% of filers take the standard deduction
Common Itemized Deductions
- •Mortgage interest: Deductible on first $750,000 of loan principal
- •State and local taxes (SALT): Capped at $10,000/year ($5,000 married filing separately)
- •Charitable contributions: Cash donations + non-cash items (clothing, furniture, etc.)
- •Medical expenses: Only the amount exceeding 7.5% of AGI
- •Casualty losses: Only in federally declared disaster areas
Who Should Itemize in 2025?
You should itemize if your deductible expenses exceed $15,000 (single) or $30,000 (married). This most commonly applies to: homeowners in the first 10 years of a mortgage (when interest is highest), people in high-tax states (CA, NY, NJ, MA) who hit the $10,000 SALT cap and have high property taxes, and households with significant charitable giving.
Strategy: "Bunch" deductions. Make two years of charitable donations in one tax year, then take the standard deduction the next year. This maximizes the benefit of itemizing in alternating years instead of being just under the threshold both years.
Do the math both ways every year — don't assume. Run the numbers: add mortgage interest + state taxes + charitable donations. If it's more than your standard deduction, itemize. Takes 15 minutes and could save hundreds to thousands.