Standard Deduction vs. Itemizing: What’s the Difference?

Many taxpayers have heard they can deduct certain expenses on their tax return — things like mortgage interest, charitable giving, certain taxes, or medical bills. But what most people aren’t sure about is how those deductions actually get reported. Here's the difference: taking the standard deduction or itemizing.

The Standard Deduction

The standard deduction is a built-in deduction that the IRS gives everyone. It is a fixed amount based on your filing status, and for most taxpayers, it is the option that offers the largest benefit with the least effort. No receipts. No calculations. It is simple and automatic.

Itemizing Your Deductions

Itemizing is different. Instead of taking the fixed standard deduction amount, you add up certain eligible expenses, like mortgage interest, state and local taxes, medical expenses (above a certain threshold), and charitable contributions. If these expenses add up to more than the standard deduction, itemizing may save you more.

Which One Do You Choose?

Here’s the best part: you don’t have to guess. You can compare the two and choose the deduction that gives you the most tax savings.

Each week, I share a clear, bite-sized tax insight straight from my continuing education so you can stay informed without sifting through tax changes.

Next week, we further discuss what counts toward itemizing deductions.

Thanks for reading,

Brandy Sparkman, EA

I’ll keep learning so you can stay focused on what you do best.

See you next week for another Tax Minute.