Deductions reduce your taxable income. You choose between the standard deduction, a fixed amount based on filing status, or itemizing, which means listing individual deductible expenses.
Since the 2018 tax reform roughly doubled the standard deduction, most taxpayers now take the standard deduction. Itemizing only makes sense when your qualifying expenses exceed the standard amount.
2026 standard deduction amounts
For 2026, the standard deduction is $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. Taxpayers 65 and older or blind receive an additional amount.
The standard deduction is simple: no receipts, no Schedule A. Most W-2 employees with moderate mortgages and typical charitable giving fall below the itemizing threshold.
If you are married filing separately and your spouse itemizes, you must also itemize, you cannot take the standard deduction.
Common itemized deductions
Mortgage interest on up to $750,000 of qualified home debt is deductible if you itemize. Property taxes and state/local income or sales taxes count toward SALT, but the SALT deduction is capped at $10,000 per return.
Charitable contributions to qualified organizations are deductible when itemizing. Cash donations are generally limited to 60% of AGI; non-cash donations have separate limits.
Medical expenses exceeding 7.5% of AGI can be itemized. For most healthy earners, this threshold is hard to reach unless you have a year with major medical bills.
When itemizing wins
Itemizing tends to make sense with a large mortgage (high interest in early years), high property taxes combined with state income tax near the SALT cap, and significant charitable giving.
A married couple with $18,000 in mortgage interest, $10,000 in SALT, and $5,000 in charitable giving has $33,000 in itemized deductions, above the $32,200 standard deduction. The extra $800 saves tax at their marginal rate.
Bunching charitable donations into alternating years, giving two years' worth in one year, can push you over the standard deduction threshold in high-giving years.
Deductions you get either way
Above-the-line deductions reduce AGI regardless of whether you itemize. These include traditional IRA contributions, student loan interest (up to $2,500), HSA contributions, and half of self-employment tax.
Pre-tax 401(k) contributions reduce W-2 wages directly and do not appear on your return as a deduction, but they lower taxable income just the same.
Do not confuse above-the-line deductions with itemized ones. You can take the standard deduction and still benefit from IRA and HSA contributions.
Compare standard vs. itemized for your return
Toggle itemized vs. standard in the tax estimator and enter your mortgage interest, property taxes, charitable giving, and medical expenses to see which path saves more.
Run both scenarios before year-end to plan charitable gifts, property tax payments, or retirement contributions.