Standard Deduction vs. Itemized Deductions: What’s the Difference?

When filing your tax return, deductions help reduce your taxable income, which may

lower the amount of tax you owe. Taxpayers generally have two choices when claiming

deductions:

• Standard Deduction

• Itemized Deductions

You can only choose one, and the goal is to select the option that gives you the best

tax benefit.

Standard Deduction

The standard deduction is a fixed amount decided by the IRS every year which you

can use based on your filing status. Most taxpayers choose this option because it is

simple and does not require proof of expenses.

2025 Standard Deduction (Filed in 2026)

1. Single / Married Filing Separately: $15,750

2. Married Filing Jointly: $31,500

3. Head of Household: $23,625

Additional deductions are available for taxpayers who are age 65 or older or blind.

Itemized Deductions

Instead of taking a fixed amount decided by the IRS, you can itemize eligible

expenses such as:

• Mortgage interest

• State and local taxes (SALT)

• Medical expenses exceeding 7.5% of AGI

• Charitable donations

• Disaster losses

If the total of these expenses is greater than the standard deduction, itemizing will be

more beneficial.

Example 1: Standard Deduction

Filing Status: Single

Income: $40,000

Itemized deductions: $14,000

Standard deduction: $15,750

Because the standard deduction is higher, taxable income would be reduced more by

choosing the standard deduction.

Example 2: Itemized Deduction

Filing Status: Married Filing Jointly

Income: $90,000

Mortgage interest: $14,000

Property taxes: $8,000

Charitable donations: $4,000

Total itemized deductions = $26,000

Standard deduction = $31,500

In this case, the standard deduction would still be higher, so it would likely be the

better option. However, if the couple’s itemized deductions were greater than $31,500, then itemizing would provide a larger tax benefit.

Need Help Choosing the Right Deduction or have a question about taxes?

At Ujjaval Tax Service, we help individuals identify the best deduction strategy to

minimize taxes and maximize refunds.

Brought to you by:

Ujjaval Tax Service

350 Ed Schmidt Blvd

Hutto, TX 78634

(512) 766-3174

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Frequently Asked Questions (FAQ)

Q: What is the standard deduction?

A: The standard deduction is a fixed amount set by the IRS that reduces your taxable income based on your filing status.

Q: What are itemized deductions?

A: Itemized deductions allow taxpayers to subtract specific expenses, such as mortgage interest, medical expenses, state taxes, and charitable donations, from their taxable income.

Q: Should I take the standard deduction or itemize?

A: Choose the option that provides the larger deduction. Most taxpayers take the standard deduction because it is simpler and often higher than their itemized expenses.

Q: What is the standard deduction for 2025 taxes filed in 2026?

A: The standard deduction is $15,750 for single filers, $31,500 for married filing jointly, and $23,625 for head of household.

Q: What expenses qualify for itemized deductions?

A: Common itemized deductions include mortgage interest, state and local taxes (SALT), medical expenses exceeding 7.5% of adjusted gross income, and charitable donations.

Q: Can I claim both the standard deduction and itemized deductions?

A: No. Taxpayers must choose either the standard deduction or itemized deductions when filing their tax return.