The standard deduction vs. itemized deductions: What’s the difference?

When it comes to tax filing, understanding deductions is vital to maximizing your potential refund or minimizing the income tax you owe the Internal Revenue Service (IRS).

A deduction is an amount you can subtract from your taxable income to reduce the overall amount subject to taxation. (This is different than a tax credit.)

When filing your income taxes, there are two options to consider: taking the standard deduction or itemized tax deductions.

The difference between the standard deduction vs. itemized deductions comes down to simple math. The standard deduction lowers your income by one fixed amount. On the other hand, itemized deductions are made up of a list of eligible expenses. You can claim whichever deduction reduces your tax bill the most. You are not allowed to claim both.

Read on to better understand the difference between the two terms so you can maximize your tax planning.

Standard deduction: What is it and how does it work?

While we covered the basics above, let’s dig into the standard deduction definition and cover “What is the standard deduction? How does the standard deduction work?”

The standard tax deduction is a fixed dollar amount that reduces the income you’re taxed on and is the most common type of deduction taxpayers take. The standard deduction:

• Allows you to take a tax deduction even if you have no expenses that qualify for claiming itemized deductions
• Eliminates the need for itemizing deductions

The standard deduction amount varies according to your filing status.

Here are the amounts for tax year 2023 (for returns filed in 2024):

• Single or Married Filing Separately — $13,850
• Married Filing Jointly or Qualifying Surviving Spouse — $27,700
• Head of Household — $20,800

These are the 2024 standard deduction amounts (for tax returns filed in 2025):

• Single or Married Filing Separately — $14,600
• Married Filing Jointly or Qualifying Surviving Spouse — $29,200
• Head of Household — $21,900

Additional standard deduction

For 2023 and 2024 taxes, there’s a higher standard deduction for certain taxpayers who are blind and/or are 65 or older:

Standard deduction 2023:

Blind:

• Single – $15,700
• Head of Household – $22,650
• Married Filing Separately — $15,350
• Married Filing Jointly — $29,200 for 1 or $30,700 for both
• Qualifying Surviving Spouse – $29,200

65 and older:

• Single – $15,700
• Head of Household – $22,650
• Married Filing Jointly — $29,200 for 1 or $30,700 for both
• Married Filing Separately — $15,350
• Qualifying Surviving Spouse – $29,200

Blind and 65 or older:

• Single — $17,550
• Head of Household — $24,500
• Married Filing Separately — $16,850
• Married Filing Jointly — $30,700 for 1 or $33,700 for both
• Qualifying Surviving Spouses — $30,700

**The Married Filing Separately amounts in these sections are for taxpayers that have a spouse that files a return. These numbers could change if your spouse does not file a return.

Standard deduction 2024:

Blind:

• Single — $16,550
• Head of Household — $23,850
• Married Filing Separately — $16,150
• Married Filing Jointly — $30,750 for one spouse or $32,300 for both spouses
• Qualified Surviving Spouse  — $30,750

65 or older:

• Single — $16,550
• Head of Household — $23,850
• Married Filing Separately — $16,150
• Married Filing Jointly — $30,750 for one spouse or $32,300 for both spouses
• Qualified Surviving Spouse — $30,750

Blind and 65 or older:

• Single — $18,500
• Head of Household — $25,800
• Married Filing Separately — $17,700
• Married Filing Jointly — $32,300 for one spouse or $35,400 for both spouses
• Qualifying Surviving Spouse — $32,300

**The Married Filing Separately amounts in these sections are for taxpayers that have a spouse that files a return. These numbers could change if your spouse does not file a return.

What are itemized deductions and how do they work?

Itemized deductions also reduce your Adjusted Gross Income (AGI), but work differently than the standard deduction. As the name implies, the standard deduction is a standard (or fixed) amount. In contrast, the itemized deduction is a dollar-for-dollar deduction. And the amount differs from taxpayer to taxpayer. The itemized tax deduction amount is determined by adding all applicable deductions and subtracting the sum from your adjusted gross income. Common and allowable itemized deduction items include:

• Casualty and theft losses from a federally declared disaster
• Charitable donations
• Deduction for state and local taxes (Related read: What is the SALT deduction?)
• Gambling loss deduction (only to the extent of gambling winnings reported on your tax return)
• Home mortgage interest (Related read: Mortgage interest tax deduction)
• Unreimbursed dental and medical expenses (AGI threshold is 7.5%), including health insurance premiums paid with after-tax income

Other slightly less common but are equally tax-beneficial itemized deductions to consider this tax season include:  

• Loss from other activities from Schedule K-1 (Form 1065-B)
• Federal estate tax on income in respect of a decedent
• Amortizable bond premium on bonds acquired before Oct. 23, 1986
• Deduction for repayment of amounts under a claim of right if over $3,000
• Certain unrecovered investments in a pension
• Impairment-related work expenses of disabled person

Itemized deductions vs standard deduction: How do you decide what route to take?

Are itemized deductions vs. a standard deduction the best for your tax outcome?

It’s clear that deductions reduce your tax liability. Therefore, you will want to determine which type of deduction benefits you most.

If you’re still questioning, “Should I itemize deductions?”: Here’s the answer. It comes down to the amount that is the most. Crunch a few numbers to arrive at your best bet.

• First, calculate your itemized deductions. You might be able to claim some itemized deductions on your state return even if you can’t claim them on your federal return.
• Then, compare the itemized deduction amount to the standard deduction (based on your filing status).
• If the amount of your itemized deduction exceeds the standard deduction, then you should itemize deductions on your tax return.

Standard vs itemized deduction example

If you’re a taxpayer filing as Single in 2024 and your Adjusted Gross Income is $40,000 with itemized deductions of $14,000, then your taxable income is reduced to $26,000. If you elected to use the standard deduction, you would reduce your AGI by $14,600, making your taxable income $25,400. In this example, you should opt to take the standard deduction versus taking an itemized deduction.

When to itemize vs. take the standard deduction?

In some situations, taking the standard deduction isn’t always best. Without doing the math, you can sometimes see when itemizing makes more sense. Here are common situations where your itemized deductions may be more than the standard deduction:

• You ran up significant out-of-pocket unreimbursed medical and dental expenses within the tax year.
• You paid real estate taxes and home mortgage interest on your home. (See more about deducted mortgage interest and Form 1098).
• You had large, uninsured casualty (fire, flood, wind) or theft losses from a federally declared disaster.
• You have large gambling losses (and enough gambling winnings to offset those losses)
• You made substantial charitable contributions.
• You had other allowable deductions, such as impairment-related work expenses of a disabled person or repayment of amounts subject to a claim of right, exceeding $3,000.

“How should I itemize deductions?”

If itemizing gives you a better deduction, you’ll want to know how to do it. Here’s a high-level overview of how to itemize:

1.       Gather your itemized deductions: Collect all the necessary documents, such as receipts, statements, and forms, that relate to your deductible expenses. These may include medical bills, property taxes, mortgage interest statements, charitable contribution receipts, and unreimbursed business expenses.

2.       Calculate eligible expenses: Review your documents and add up your eligible expenses in each category. Common categories include medical and dental expenses, state and local taxes, mortgage interest, charitable contributions, and certain job-related expenses.

3.       Fill out Schedule A: Use the information you gathered to complete Schedule A, which is part of the Form 1040 tax return. Fill in the appropriate sections with your deductible expenses, making sure to follow the instructions and guidelines provided by the IRS.

4.       File your tax return: Once you have completed Schedule A and calculated your total itemized deductions, include this information along with other required forms and schedules in your tax return.

Submit your tax return by the filing deadline, either electronically or by mail. Want help? Learn about the ways to file with H&R Block.

Standard deduction vs. itemized deductions – state tax considerations

There’s another situation where you may want to itemize deductions even if your total itemized deductions are less than your standard deduction: If you’d pay less tax overall between your federal and state taxes.

This can happen if you itemize on your federal and state returns and get a larger tax benefit than you would if you claimed the standard deduction on your federal and state returns.

Get help from H&R Block to claim an itemized or standard deduction

Need help deciding if you should itemize vs. take the standard deduction? Or need help finding relevant tax credits and deductions to reduce your taxable income?

Whether you choose to file with a tax professional or file with H&R Block Online, you can rest assured that we’ll get you the biggest refund possible.