Standard Deduction vs Itemized Deduction: Which One’s Better?

Many taxpayers want to lower their taxable income in the simplest and most efficient way possible. The standard deduction offers a straightforward option. Itemized deductions can create larger tax savings in some situations. The challenge is knowing which path may deliver the greater benefit for your filing year. Each method works differently and can change how much of your income is subject to tax.

Here’s a guide that explains how the standard deduction compares with itemized deductions and when each approach may be more advantageous. You will see how both methods reduce taxable income, what the IRS allows, and why some filers choose one method over the other.

What Is a Standard Deduction?

The standard tax deduction is a flat amount of money that the government allows you to subtract from your taxable income to lower your tax liability. The amount is determined by the IRS every year and is generally adjusted for inflation. 

The standard deduction is an alternative to itemizing your deductions. You can claim it if you don’t have enough eligible expenses to itemize or if you prefer not to itemize.

For the 2024 tax year, the standard deduction amounts are as follows:

✅ Single or Married Filing Separately: $14,600

✅ Married Filing Jointly: $29,200

✅ Head of Household: $21,900

✅ Additional amount for blindness or age 65+:

For the 2025 tax year, the standard deduction base amounts based on current IRS inflation adjustments are as follows:

✅ Single or Married Filing Separately: $15,750

✅ Married Filing Jointly or Qualifying Surviving Spouse: $31,500

✅ Head of Household: $23,625

✅ Additional amount for blindness or age 65+:

Most taxpayers can claim the standard deduction, although exceptions apply. For example, certain nonresident aliens and taxpayers whose spouse itemizes on a separate return cannot take it. The next section explains how this compares with itemized deductions.

What is an itemized deduction?

Rather than taking the standard deduction set by the IRS, some people may find that their deductions are higher when they claim individual itemized deductions for their eligible expenses incurred throughout the tax year. Unlike the standard deduction, itemized deductions vary from person to person because it depends on each taxpayer’s eligible expenses during the year.

Itemized deductions include:

If you choose to itemize your deductions, you’ll need to keep track of your eligible expenses and report them on your tax return. You should keep documentation, such as receipts and statements, to substantiate that you incurred the expense and that it was eligible, in case the IRS requests proof during an audit or review. 

Not everyone will benefit from itemizing their deductions. If your eligible expenses are less than the standard deduction amount, it’s usually better to take the standard deduction because it saves you time and effort.

Standard Deduction vs Itemized Deduction: Key Differences

For most eligible taxpayers, it’s a choice each year whether to take the standard deduction or itemize, but some individuals (for example, certain nonresident aliens or spouses of itemizers filing separately) are required to itemize or are not allowed to use the standard deduction. You can run the numbers for each type and see which one is higher. Keep in mind, though, that itemized deductions require proof and documentation of expenses incurred.

The main differences between a standard deduction and an itemized deduction are:

Eligibility

Most U.S. taxpayers who file a return and are not in certain special categories (such as some nonresident aliens or spouses filing separately when the other spouse itemizes) can claim the standard deduction. Any taxpayer who is allowed to itemize may choose to itemize deductions even if their itemized total is lower than the standard deduction.

Amount

The standard deduction is a fixed amount set by the government, based on your filing status and other factors, while the amount of itemized deductions you can claim is based on the eligible expenses you incurred during the year.

Eligible Expenses

The standard deduction is a flat amount that you can subtract from your income, while itemized deductions are specific expenses that are eligible for deduction, such as medical expenses, state and local taxes, mortgage interest, and charitable donations.

Documentation

To claim the standard deduction, you don’t need to list specific deductible expenses or attach documentation to your return, though you should still keep basic records for your tax filings.

However, to claim itemized deductions, you must keep records of your eligible expenses and be able to provide documentation to the IRS upon request to show that the expenses were incurred and are eligible.

Time and Effort

Claiming the standard deduction is generally easier and less time-consuming than itemizing your deductions because you don’t have to keep track of your eligible expenses or provide documentation.

When to Use Itemized Deductions Over Standard Deductions

Each tax year, you should compare your standard deduction to your potential itemized deductions and, in most cases, choose the option that gives you the lower tax bill. Itemizing usually makes sense only when your total eligible expenses exceed the standard deduction for your filing status.

Itemized deductions take more time (since you have to itemize each deduction) and require more administration maintenance (since you have to keep records of your expenses throughout the year). 

Taking the standard deduction is much simpler. It doesn’t require you to list out specific deductible expenses on your return. Basic tax records are still useful for your files, but the process itself requires minimal documentation.

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