Every year, taxpayers face a big decision: should I take the standard deduction, or should I itemize? Understanding the difference can save you hundreds or even thousands of dollars, but knowing which choice is best is not always straightforward.

I. How Deductions Lower Your Taxes

The standard and itemized deductions are used to decrease your taxable income. Your taxable income is the number that is used to determine your federal tax liability based on the IRS tax brackets. So, if you can lower your taxable income, you can decrease your tax bill and keep more money in your pocket.

II. Standard Deduction Basics

According to the IRS, the standard deduction is a specific dollar amount that reduces the amount of income on which you are taxed. The deduction amount is adjusted each year for inflation and varies according to your filing status and whether you are 65 or older and/or blind. The standard deduction is designed to ensure fair treatment across different household situations. 2025 standard deductions are:

III. Itemized Deduction Basics

Itemized deductions are a list of certain expenses you can use to reduce your taxable income. These include medical expenses, taxes paid to the state and local government, personal property and real estate taxes, mortgage interest, and charitable contributions to name a few.

IV. Choosing the Right Deduction

If your total itemized deductions do not total more than the standard deduction, then you should take the standard deduction. If the itemized deductions do total more than the standard, then you should itemize.

For example, let’s say you are a single filer who has adjusted gross income of $100,000 with the following:

- $3,500 in state and local income taxes

- $3,000 in real estate taxes paid

- $250 in personal property taxes paid

- $7,900 in mortgage interest

- $5,000 in charitable contributions

That means you have $19,650 in itemized deductions. As a single filer, the standard deduction for you is $15,750. Because your $19,650 in itemized deductions exceeds the $15,750 standard deduction, you would itemize, lowering your federal tax bill by $858.

V. Maximize Your Tax Savings with Expert Guidance

Even though itemized vs. standard deductions might seem straightforward, small mistakes can cost you and could trigger IRS questions. We are here to identify all eligible deductions, document them properly, and ensure your return is both accurate and optimized. With the tax deadline approaching, now is the perfect time to review your situation and make sure you are keeping as much of your hard earned money as possible. We can also help you proactively plan throughout the year so you can take full advantage of available deductions and strategies, rather than waiting until tax time. If you want peace of mind and confidence that your deductions are applied correctly, we are here to help

Click here to get expert help maximizing your deductions and making tax season stress-free.

Standard vs. Itemized Deductions: How to Save on Taxes This Year

The Good News: What You Need to Know for Your 2025 Taxes 💵💰