Should I itemize my taxes?

Depending on your situation, you could save more by not itemizing and taking the standard deduction.

A tax deduction reduces your taxable income, which in turn can lower your tax bill. There are generally two ways you can claim deductions on your federal income tax return: you can itemize deductions, or you can take the standard deduction.

A review of the standard deduction amount and what qualifies for itemizing can help you determine which is right for you.

Why itemize?

When it comes to deductions, you generally want to choose the option that lowers your taxable income the most.

The standard deduction is a fixed amount, while itemized deductions are made up of a list of eligible expenses.

What is the standard deduction?

While the standard deduction is a specific amount provided by the IRS, itemizing deductions requires tracking and documentation. You can use IRS Schedule A (Form 1040) to itemize your mortgage interest expense, charitable donations, medical and dental expenses, state taxes and other itemizable expenses to see whether your itemized deductions will exceed your standard deduction.

The standard deduction varies based on your income, age, filing status, and whether you’re blind, and changes each year. For the 2025 tax year:

• If you’re single or filing as an individual, your standard deduction is $15,000 (plus $2,000 if age 65 and older).
• If you’re married and filing jointly, your standard deduction is $30,000 (plus $1,600 per person age 65 or older).
• If you’re filing as head of household, your standard deduction is $22,500 (plus $2,000 if you’re age 65 and older).

How do tax rates factor in?

The rate at which your income is taxed can play a role in whether you choose standard or itemized deductions.

There are seven tax brackets, ranging from 10-37%. The highest bracket for single filers and married couples filing jointly for the 2025 tax year starts with taxable incomes over $626,350 and $751,600 respectively.

What expenses can I itemize?

Expenses that qualify for itemized deductions include qualified mortgage interest, state and local income taxes, medical and dental expenses, and charitable contributions.

Mortgage interest.

For married couples filing jointly, you can deduct home mortgage interest on the first $750,000 of debt. If your mortgage was incurred before December 16, 2017, married couples filing jointly can deduct home mortgage interest on the first $1 million of debt.¹

State taxes.

The itemized deduction for state taxes is capped at $10,000. Residents of high tax states like California, New York and New Jersey may have a more difficult time surpassing the standard deduction because of that limitation.

Medical and dental expenses.

You’re allowed to deduct qualified, unreimbursed medical expenses that exceed 7.5% of your adjusted gross income (AGI). Qualified expenses include surgeries, preventive care, treatment, dental and vision care, and prescription medications. Medical expenses for which you’ve been reimbursed by your insurance or employer cannot be deducted.

Charitable deductions.

Contributions to qualified charities are still fully deductible. If you itemize deductions, gifts of cash to qualified public charities can be deducted in an amount up to 60% of your AGI. If donations are made to private foundations (such as a family foundation), the annual limit is 30% of your AGI.

Small donation amounts may not be enough of a deduction to take advantage of itemizing. If the tax benefits are an important consideration, you may want to approach your giving strategy differently. For example, if you bunch your donations into one year instead of multiple, you’re more likely to exceed the standard deduction.

So…should I itemize?

Deciding if you should itemize deductions depends on your situation. If your total deductions exceed the standard deduction, then itemizing will work for you. However, if your itemized deductions total less than the standard deduction, taking the standard deduction will make more sense.

Tax planning shouldn’t be a once-a-year activity. Consider these year-round tax planning tips that could help lower your tax bill in April.