Background

The Tax Cuts and Jobs Act (TCJA) of 2017 raised the standard deduction and limited or changed many itemized deductions. That shift caused most taxpayers to use the standard deduction. For 2025, inflation adjustments changed the exact standard-deduction amounts; always confirm the current dollar figures on the IRS “Standard deduction” page before you file (IRS.gov).

Why the choice matters

  • The standard deduction reduces taxable income by a fixed amount based on filing status. It’s simple and often the correct choice for taxpayers without large deductible expenses.
  • Itemizing lists specific deductible expenses and can produce a larger deduction if your total qualifying expenses exceed the standard amount. Common itemized categories include mortgage interest, charitable contributions, unreimbursed medical expenses (subject to the IRS threshold), and state/local taxes (SALT) subject to statutory limits.

How to compare (step-by-step)

  1. Gather documentation. Collect mortgage interest statements (Form 1098), property tax bills, receipts for charitable gifts, medical bills, and records of unreimbursed casualty or theft losses.
  2. Total the categories allowed for itemizing. For medical expenses, use the IRS threshold rules (see IRS Publication 502).
  3. Check the 2025 standard deduction amount for your filing status on IRS.gov and compare it to your itemized total.
  4. Choose the higher deduction. If itemizing wins, keep detailed records and year-end documentation in case of audit.

Practical examples (simplified)

  • Example A: If your itemized expenses total less than the 2025 standard deduction for your filing status, the standard deduction is the better choice for that tax year.
  • Example B: If you have a high mortgage interest payment, large charitable gifts, or significant unreimbursed medical expenses in a single year, those items can push your total above the standard deduction and justify itemizing.

Planning strategies for 2025

  • Bunching deductions: Combine charitable contributions, elective medical procedures, or property tax payments into one year to exceed the standard deduction and itemize that year. See our piece on “Bunching Charitable Gifts to Exceed the Standard Deduction” for tactics and examples.
  • Use a calculator: Run a side-by-side comparison using tax software or our practical calculator at “When to Itemize vs Take the Standard Deduction: A Practical Calculator” to confirm which yields the lower tax.
  • Account for limits: Remember the SALT cap and other statutory limits introduced by the TCJA. If you’re subject to the Alternative Minimum Tax (AMT), some itemized deductions may be limited.

Documentation and audit readiness

Retain supporting documents for at least three years after filing (longer if you file amended returns or claim certain credits). Keep receipts, bank statements, and forms that substantiate large itemized amounts. Our guide on tracking medical deductions, “Medical Expense Deductions: What’s Qualifying and How to Track“, shows practical recordkeeping tips.

Common mistakes to avoid

  • Forgetting to include all eligible expenses (charitable gifts by check, out-of-pocket medical costs, casualty losses where applicable).
  • Assuming the standard deduction is always better — run the numbers each year.
  • Failing to document large deductions or using inconsistent methods to estimate amounts.

When to get professional help

If you have complex situations — rental properties, large charitable trusts, business losses, or questions about AMT or state tax issues — consult a CPA or tax attorney. A professional can run a multi-year analysis (important when you expect fluctuating deductions or income) and recommend timing strategies.

Authoritative sources and where to check numbers

Professional disclaimer

This article is for educational purposes and does not constitute tax advice. For tailored guidance, consult a licensed tax professional or CPA.

Notes on accuracy

Dollar thresholds and inflation adjustments change annually. Confirm 2025 standard-deduction amounts and deduction limits on IRS.gov before filing.