Standard vs Itemized Deductions: Which Saves You More?

The standard deduction in 2024

Add $1,550 (MFJ) or $1,950 (Single/HoH) if you're 65+ or blind. You take it automatically — no receipts, no calculation.

What you can itemize

The main itemized deductions on Schedule A:

• State and local taxes (SALT) — capped at $10,000 total (state income or sales tax + property tax combined)
• Mortgage interest on up to $750K of acquisition debt
• Charitable contributions (cash up to 60% of AGI; documented)
• Medical expenses exceeding 7.5% of AGI
• Casualty losses in federally declared disaster areas

The SALT cap is the dealbreaker for many

Before 2018, big property-tax bills in NY, NJ, CA, IL were easy ways to clear the standard deduction. The $10K cap changed that. A homeowner paying $15,000 in property tax still only counts $10,000 toward itemizing.

Quick decision rule

Add up your potential itemized deductions. If the total is less than the standard deduction for your status, take the standard. If it's more, itemize.

Bunching: a strategy for borderline cases

If you're close to the threshold every year, "bunch" two years of charitable giving into one year (often via a donor-advised fund). Itemize that year, take the standard the next.

Above-the-line deductions still apply either way

These reduce your AGI before the standard vs itemized choice — you get them no matter what:

• Traditional IRA contributions
• HSA contributions
• Student loan interest (up to $2,500)
• Half of self-employment tax
• Educator expenses (up to $300)

What tax software does for you

Every major tax program compares both options and picks whichever produces a lower tax bill. If you itemize manually, run the standard deduction number as a sanity check.