Standard Deduction vs. Itemized Deductions: Which Should You Claim?
- •For 2025, standard deductions are $15,750 for Single / $31,500 for Married Filing Jointly.
- •For 2026, standard deductions increase to $16,100 for Single / $32,200 for Married Filing Jointly.
- •Itemizing on Schedule A only benefits taxpayers whose total allowable deductions exceed their standard deduction threshold.
1. The High Standard Deduction Baseline
Under the One Big Beautiful Bill Act (P.L. 119-21) and subsequent inflation adjustments, the standard deduction provides a substantial reduction of taxable income with zero documentation requirements. In 2025, Single filers receive $15,750 ($31,500 for MFJ; $23,625 for HOH). In 2026, this increases to $16,100 ($32,200 for MFJ; $24,150 for HOH). More than 85% of US individual taxpayers claim the standard deduction.
2. Common Schedule A Itemized Deductions
You should only itemize if the sum of your qualified Schedule A deductions exceeds your standard deduction. Allowable itemized deductions include: state and local taxes (SALT capped at $10,000), qualified home mortgage interest on debt up to $750,000, unreimbursed medical expenses exceeding 7.5% of AGI, and charitable contributions to qualified 501(c)(3) organizations.
3. The Impact of the $10,000 SALT Cap
The statutory $10,000 limitation on state and local property, income, and sales tax deductions prevents many high-tax state residents from surpassing the high standard deduction threshold unless they also have substantial mortgage interest or major charitable donations.
- IRC § 63: Taxable Income Defined
- IRS IRB 2025-45 / P.L. 119-21 (OBBBA)
- IRS Revenue Procedure 2025-32
Frequently Asked Questions
Can married filing separately spouses choose different deduction methods?
No. Under IRC § 63(c)(6), if one spouse itemizes on a separate return, the other spouse cannot claim the standard deduction and must also itemize (even if their itemized deductions equal $0).
Do self-employed business expenses count as itemized deductions?
No. Business expenses for 1099 contractors and sole proprietors are reported on Schedule C and deducted directly from gross business receipts before AGI is calculated, completely independent of whether you itemize or take the standard deduction on Form 1040.