Standard vs. Itemized Deductions: A Simple Guide To Choosing the Right Path
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Each spring, millions of taxpayers face a deceptively simple question — take the standard deduction or itemize? For those not versed in the lingo of taxes, the distinction can be confusing. But understanding which path is right for you can mean hundreds, even thousands, of dollars in savings.
Alec Kellzi, a CPA at File Tax, and Melissa M. Estrada, a CFP at Fidela Wealth, explained the difference between the two types of deductions and how to decide which one best fits your situation.
The Standard Deduction: Simplicity That Saves Time
The standard deduction, according to Kellzi, “is a fixed amount that the Internal Revenue Service (IRS) allows you to subtract from your taxable income automatically.”
For the 2025 tax year, the One Big Beautiful Bill Act (OBBBA) had the IRS raise the standard deduction to $15,750 for single filers, $31,500 for married couples filing jointly, and $23,625 for heads of household, reflecting inflation adjustments. Those figures will rise for the 2026 tax year to $16,100, $32,200 and $24,150, respectively.
That means most taxpayers can lower their taxable income by those amounts without need of receipts, spreadsheets or itemized lists.
“The standard deduction takes seconds to claim on your tax return,” Kellzi noted. “You don’t need to provide documentation or list every qualifying expense.”
This option is ideal for households without significant deductible expenses — such as renters, single filers, or those without large medical bills, mortgage interest or charitable donations. It’s the simplest path for most taxpayers, especially those who value a quick and hassle-free filing process.
The Itemized Deduction: More Work, Potentially Bigger Reward
Itemizing, on the other hand, means breaking down each of the relevant expenses you’re hoping to write off, including mortgage interest, medical costs, property taxes, charitable contributions and certain investment-related expenses. It’s a more detailed and often more time-consuming process.
“Most Americans take the standard deduction; it is easier for most people,” Estrada said. “But for those who don’t, the itemized deduction means listing specific eligible deductions.”
Itemizing can make sense for homeowners, high earners or those living in high-tax states, especially in 2025, when the State and Local Tax (SALT) deduction cap rises from $10,000 to $40,000. This change could make itemizing worthwhile for more taxpayers who pay substantial state and local taxes.
However, Estrada cautioned that it’s not always the most efficient route. “Filers who itemize need to keep more documentation and records on the items they are deducting, and many deductions have limits, meaning not every dollar counts,” she said.
Itemizing requires tracking down receipts, statements and proof of payment for each deductible expense, and not every expense qualifies in full. For example, only medical expenses exceeding 7.5% of your adjusted gross income can be deducted, and charitable donations are subject to percentage limits.
How To Decide for 2025
Choosing between the standard and itemized deduction ultimately comes down to which saves you more money for the effort involved.
“Itemizing is worth it if your deductible expenses exceed your standard amount,” Kellzi said. “You need organized records and more time to prepare your return, but if you have high mortgage interest, property taxes or medical costs, itemizing could be worthwhile.”
He also noted that most tax software programs can offer you a side-by-side calculation of both methods to show you the greater benefit.
But convenience counts, too. As Estrada explained, “It isn’t always worth the extra effort. Filers who itemize need to keep more documentation and records, and many deductions have limits, meaning not every dollar counts.”
For most taxpayers, she said, the standard deduction remains the simpler and more efficient route.
Final Thoughts
If you’re a renter with relatively straightforward finances, the standard deduction will likely save you time and yield similar savings. But if you’re a homeowner with high property taxes or you live in a high-tax state, it may be worth crunching the numbers — or having a CPA do it for you.
When in doubt, the smarter move is whichever keeps more money in your pocket.
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