Standard vs Itemized Deductions
A deduction reduces the amount of a taxpayer's income that's subject to tax, generally reducing the amount of tax the individual may have to pay. Most taxpayers now qualify for the standard deduction, but there are some important details involving itemized deductions that people should keep in mind.
The standard deduction is a specific dollar amount that reduces the amount of taxable income. The standard deduction consists of the sum of the basic standard deduction and any additional standard deduction amounts for age and/or blindness.
In general, the IRS adjusts the standard deduction each year for inflation. It varies by filing status, whether the taxpayer is 65 or older and/or blind and whether another taxpayer can claim them as a dependent.
Taxpayers cannot take the standard deduction if they itemize their deductions.
Some taxpayers choose to itemize their deductions if their allowable itemized deductions total is greater than their standard deduction. Other taxpayers must itemize deductions because they aren't entitled to use the standard deduction.
Taxpayers who must itemize deductions include:
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A married individual filing as married filing separately whose spouse itemizes deductions.
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An individual who was a nonresident alien or dual status alien during the year (some exceptions apply).
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An individual who files a return for a period of less than 12 months due to a change in his or her annual accounting period.
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An estate or trust, common trust fund or partnership.
The standard deduction for married couples filing jointly for tax year 2025 rises to $31,500. For single taxpayers and married individuals filing separately, the standard deduction rises to $15,750; and for heads of households, the standard deduction will be $23,625 for tax year 2025.
Bennett Zamani
Partners at Tax Experts LLC
Call/Text (201) 681-5633
