Itemize or take the standard deduction? A quick way to decide
Take the larger of the two. Standard deduction amounts for 2025 and 2026, what goes on Schedule A, the SALT cap, an invented example, a new 2026 charity rule.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on October 24, 2026.
Take whichever is larger. For tax year 2025 the standard deduction is $15,750 for single and married filing separately, $31,500 for married filing jointly and $23,625 for head of household, with extra amounts at 65 or older or blind. Itemize on Schedule A only if your allowed itemized deductions add up to more.
- The choice is yearly. A home purchase, large medical bills or big gifts can change the answer.
- Schedule A covers state and local taxes (SALT), mortgage interest, gifts to charity and medical costs above 7.5% of AGI for 2025.
- The SALT cap is $40,000 for 2025 ($20,000 if married filing separately), reduced for high incomes down to a floor of $10,000. For 2026 it is $40,400.
- If you file separately and your spouse itemizes, you must itemize too.
- The deductions for tips, overtime, car loan interest and age 65 and older work with either choice.
Standard deduction amounts
| Filing status | Tax year 2025 | Tax year 2026 |
|---|---|---|
| Single or married filing separately | $15,750 | $16,100 |
| Married filing jointly | $31,500 | $32,200 |
| Head of household | $23,625 | $24,150 |
| Extra for each box: age 65 or older, or blind | $2,000 if unmarried, $1,600 if married | $2,050 if unmarried, $1,650 if married |
A quick way to decide
Find your standard deduction
Use the table above for your filing status and age.
Total your Schedule A items
State and local taxes up to the cap, mortgage interest, gifts to charity, and medical costs above 7.5% of AGI.
Take the larger
If Schedule A is smaller, take the standard deduction.
An example (invented, tax year 2025)
Alex and Jordan file jointly. Their mortgage interest is $13,500, state and local taxes $11,000 and gifts to charity $3,000, a Schedule A total of $27,500. Their standard deduction is $31,500, so they take the standard deduction.
New for 2026 returns
- If you do not itemize, you can deduct up to $1,000 ($2,000 joint) of cash gifts to charity. Donor-advised funds, supporting organizations and property do not count. Gifts must be made by December 31, 2026.
- If you itemize, you lose the first 0.5% of AGI of your gifts.
- The mortgage interest debt limit stays at $750,000, now permanently, and mortgage insurance premiums count as interest again.
What to bring or do next
- Your mortgage interest statement, property tax bills, charity receipts and medical bills.
- A rough total of Schedule A items before you decide.
- A note of any large gift, medical bill or home purchase during the year.
Common questions
Can I take the standard deduction and still claim tips, overtime or the senior deduction?
Yes. The deductions for tips, overtime, car loan interest and age 65 and older are available whether you itemize or not, subject to their own limits.
What if my spouse itemizes and I file separately?
Then you must itemize too, even if your own total is small.
Is the SALT cap still $10,000?
No. For 2025 it is $40,000 ($20,000 if married filing separately), reduced by 30% of modified AGI above $500,000 but not below $10,000. For 2026 it is $40,400. It returns to $10,000 in 2030.
Does a gift to a donor-advised fund count for the new 2026 deduction?
No. The deduction for people who do not itemize covers cash gifts to qualifying charities. Gifts to donor-advised funds and supporting organizations do not count, and neither does property.
Official sources
- IRS: Tax Topic 551, standard deduction
- IRS: Instructions for Schedule A (2025)
- IRS: Revenue Procedure 2025-32 (2026 amounts)
- Public Law 119-21, enacted text
- IRS: One Big Beautiful Bill provisions
Keep reading
- Who gets the new $6,000 senior tax break?
- How do I calculate adjusted gross income (AGI)?
- Important for 2026
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