Should I itemize my taxes?

A tax deduction decreases 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.

Reviewing the standard deduction amount and knowing what you can itemize on your taxes can help you figure out which is right for you.

What is the standard deduction?

The standard deduction is a specific dollar amount that reduces your taxable income. The IRS sets this amount based on your income, age, filing status and whether you are blind, and it changes every year.

For the 2026 tax year, the IRS provides the following standard deduction amounts:

• Single or filing as an individual: $16,100 (plus $2,050 if age 65 or older)
• Married filing jointly: The standard deduction married filing jointly is $32,200 (plus $1,650 per person age 65 or older)
• Head of household: $24,150 (plus $2,050 if age 65 or older)

In addition, under provisions of the One Big Beautiful Bill Act (OBBBA), a temporary “bonus” deduction of $6,000 may be available for taxpayers age 65 and over. This deduction begins to phase out once your modified adjusted gross income (MAGI) exceeds $75,000 for single filers and $150,000 for married couples filing jointly. Under current law, the bonus deduction is effective through the 2029 tax year.

Note that several provisions of OBBBA are temporary (including the senior bonus deduction) and subject to income thresholds, IRS guidance, and future legislative updates.

What are itemized deductions?

Itemized deductions are specific, IRS-approved expenses that decrease your taxable income. They require you to track and document costs like medical care, state taxes and charitable gifts instead of taking a flat-rate standard deduction.

Standard deduction vs itemized: How to choose

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. Itemized deductions consist of a list of eligible expenses requiring tracking and documentation. You use  IRS Schedule A (Form 1040) to tally your mortgage interest expense, charitable donations, medical and dental expenses, state taxes and other itemizable expenses. Comparing these totals helps you navigate the standard deduction vs itemized decision.

What can I itemize on my taxes?

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

Itemize mortgage interest.

For married couples filing jointly, you can deduct home mortgage interest on the first $750,000 of debt ($375,000 for married couples filing separately). For mortgages incurred before December 16, 2017, married couples filing jointly can deduct home mortgage interest on the first $1,000,000 of debt.

Note that mortgage insurance premiums can once again be included as part of deductible mortgage interest.

Itemize state and local taxes.

Under current provisions of OBBBA, the itemized deduction for state and local taxes (known as the SALT deduction) is scheduled to increase in 2026 to $40,400 for most filers with MAGI under $505,000 and $20,200 for married couples filing separately with MAGI under $250,500. This amount may be adjusted annually for inflation and is subject to future legislative changes.

Itemize medical and dental expenses.

You can 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.

You cannot deduct medical expenses reimbursed by your insurance or employer.

Itemize charitable deductions.

Contributions to qualified charities generally remain deductible if you itemize. Gifts of cash to qualified public charities can be deducted in an amount up to 60% of your AGI. Donations are made to private foundations have an annual limit of 30% of your AGI.

Under OBBBA, beginning in 2026, taxpayers who itemize may see their charitable deduction reduced by an amount equal to 0.5% of AGI, meaning a portion of charitable contributions may not be deductible. As an example, a taxpayer with $200,000 in AGI would not receive a deduction for the first $1,000 of otherwise qualifying charitable donations.

Small donation amounts may not be enough of a deduction to take advantage of itemizing. If the tax benefits are an important part of your financial plan, consider bunching your donations into one year instead of spreading them out. This may help you exceed the standard deduction.

New tax deductions for 2025 and beyond

The OBBBA added several new “above the line” deductions that are available whether you itemize or not:

• The $6,000 deduction for seniors age 65 and over (as noted above).
• Effective 2025-2028, individuals may be eligible to deduct up to $25,000 in qualified tip income (occupation limits apply) and up to $12,500 in qualified overtime pay.
• Effective 2025-2028, eligible taxpayers may be able to deduct up to $10,000 of interest paid on loans for a new vehicle with final assembly in the U.S and purchased after Dec. 31, 2024.
• A charitable donation deduction of up to $1,000 for single taxpayers ($2,000 for married couples filing jointly).

MAGI thresholds, eligibility requirements, and phaseouts may apply and can vary based on filing status and individual circumstances. Download the OBBBA quick reference guide for more details.

Should I itemize my deductions?

Deciding whether to itemize depends on your financial situation. If your tracked deductions exceed the standard deduction, itemizing makes financial sense. However, if your itemized deductions total less than the standard deduction, taking the standard deduction provides a better outcome.

To ensure you’re making the most informed choice, consider meeting with your tax and financial professionals. They can provide guidance tailored to your unique circumstances and goals.

Frequently asked questions

Can I take the standard deduction and still deduct charitable donations?

Yes. Beginning in tax year 2026, even if you take the standard deduction, you may be able to deduct up to $1,000 ($2,000 if married filing jointly) of eligible cash charitable contributions to qualified organizations.

Does my filing status affect my standard deduction amount?

Yes, your filing status (single, married couple filing jointly, head of household) determines your standard deduction amount. Additional standard deductions may apply if you’re 65 or older and/or blind.

Do I need proof of my expenses to itemize?

Yes. If you itemize, you generally need records to support the deductions you claim (such as receipts, bank records, and tax forms). You report itemized deductions on IRS Schedule A (Form 1040). Keep your documentation with your tax records in case the IRS requests it.

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