Standard deduction vs. Itemized deductions: What’s the difference?

Each tax year, you must decide whether to claim the standard deduction or itemize your deductions. But what’s the difference between standard vs. itemized deductions? The standard deduction is a single amount that you can subtract from your taxable income. Itemized deductions, on the other hand, are a bundle of specific expenses you can deduct. The itemized deduction amount is determined by adding all applicable deductions and subtracting them from your adjusted gross income (AGI). See more on how these deductions work and how to determine which to take.

Learn more about the difference between Itemized Deductions and the Standard Deduction, including the latest Standard Deduction amounts.

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