Tax season 2025: Itemize or take the standard deduction?

Tax deductions help keep more money in your pocket, and when it's time to file your return, there are typically two ways to take them the standard deduction, *** single fixed amount, or itemize all of your deductions. How do you determine which is better for you itemized or standard? Basically, you look at the numbers. Phillips Joey is *** member of the National Association of Enrolled Agents with decades of experience in tax filing. We asked her about the most common personal deductions you could be missing out. On if you don't itemize out of pocket medical expenses, state and local taxes. Another big one is mortgage interest. Let's break those down. Medical expenses can be deducted once they exceed 7.5% of your gross income. State and local taxes like property taxes, can be deducted up to $10,000 and you can deduct interest paid on mortgage debt up to $750,000 to *** million dollars, depending on when you bought. Your home. All of these categories, they have to exceed the standard deduction, and the standard deduction has actually gotten *** lot higher. The standard deduction for tax year 2024 is $14,600 if you're single or married filing separately, $21,900 for head of household, and $29,200 for married couples filing jointly or qualifying surviving spouses. The Tax Cuts and Jobs Act of 27. nearly doubled the standard deduction and eliminated or capped many itemized deductions. They were things like investment related expenses, tax preparation. The big one was unreimbursed employee business expenses. So those are all gone. The most recent IRS data shows only about 9% of taxpayers itemized deductions in tax year 2022. Ultimately, the standard deduction may be your best bet, but bottom line, do your math. If you itemize your deductions, it's important to keep your detailed records all throughout the year and hold on to them. The IRS can typically audit you up to 3 years after filing, and if they find *** substantial error, they may go back up to 6 years. Reporting in Washington, I'm Amy Lowe.

Tax deductions help keep money in your pocket. When it’s time to file your return, there’s typically two ways to take them – the standard deduction, a single, fixed amount the IRS lets you deduct, or itemized deductions, where you add up qualifying costs with proof of expenses. If those costs add up, itemizing your deductions could net you a bigger tax break.Some expenses you can deduct by itemizing include:Out-of-pocket medical expenses exceeding 7.5% of your gross incomeState and local taxes up to $10,000Interest paid on mortgage debt up to $750,000 to $1 million, depending on your home purchase dateWe asked enrolled agent Phyllis Jo Kubey, a member of the National Association of Enrolled Agents with decades of experience in tax filing, how to know if you should take the standard deduction or itemize deductions. “Basically, you look at the numbers,” she says. “If your itemized deductions are going to exceed the standard deduction you definitely want to itemize.”For tax year 2024, the standard deduction is:$14,600 for single filers$21,900 for heads of household$29,200 for married couples filing jointly or qualifying surviving spousesThe Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction and eliminated or capped many itemized deductions. The National Consumer Unit reviewed individual income tax returns for tax year 2022, the most recently available IRS data, and found that only about 9% of filers itemized returns.If you choose to itemize, it’s especially important to keep detailed records as the IRS can audit returns within three years, or up to six years if substantial errors are found.

Out-of-pocket medical expenses exceeding 7.5% of your gross income
State and local taxes up to $10,000
Interest paid on mortgage debt up to $750,000 to $1 million, depending on your home purchase date

We asked enrolled agent Phyllis Jo Kubey, a member of the with decades of experience in tax filing, how to know if you should take the standard deduction or itemize deductions. “Basically, you look at the numbers,” she says. “If your itemized deductions are going to exceed the standard deduction you definitely want to itemize.”For tax year 2024, the standard deduction is:

$14,600 for single filers
$21,900 for heads of household
$29,200 for married couples filing jointly or qualifying surviving spouses

The Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction and eliminated or capped many itemized deductions. The National Consumer Unit reviewed , the most recently available IRS data, and found that only about 9% of filers itemized returns.If you choose to itemize, it’s especially important to keep detailed records as the IRS can audit returns within three years, or up to six years if substantial errors are found.

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