Standard vs. Itemized Deductions: Which One Will Save You More?

The information in this article is up to date for tax year 2025 (returns filed in 2026).

When it comes to filing your taxes, one of the most important decisions you’ll make is choosing standard vs itemized deductions. Picking the right deduction method could reduce your taxable income by thousands—and potentially increase your refund.

But how do you decide between the standard deduction vs itemized deduction?

In this guide, we’ll break down both options, highlight who benefits most from each, and help you make an informed decision that maximizes your tax savings.

What Is the Standard Deduction?

The standard deduction is a fixed dollar amount that reduces your taxable income. It’s the easiest way to claim a deduction because you don’t need to track or prove expenses. The IRS updates the deduction amount annually based on inflation, and it varies depending on your filing status, age, and whether you’re legally blind.

2025 Standard Deduction Amounts

Who Should Take the Standard Deduction?

If you have relatively few deductible expenses, the standard deduction is likely your best bet. It’s ideal for:

• Renters without mortgage interest
• Taxpayers with minimal medical bills or charitable donations
• Anyone looking for a quick and easy filing experience

The simplicity of the standard deduction makes it a popular choice for most taxpayers.

What Are Itemized Deductions?

Choosing itemized deductions vs the standard deduction means listing out qualifying expenses on Schedule A. If your total itemized deductions exceed the standard deduction for your filing status, itemizing may result in greater tax savings.

Common Itemized Deductions Include:

• Medical Expenses: Deductible if they exceed 7.5% of your AGI
• Mortgage Interest: Interest paid on your primary or secondary home
• Charitable Contributions: Donations to IRS-qualified organizations
• State and Local Taxes (SALT): Up to $10,000
• Home Equity Loan Interest: If used to improve your home

Is Itemizing Right for You?

Itemizing is most beneficial if:

• You own a home and pay significant mortgage interest
• You had high medical bills in the tax year
• You donated generously to charity
• You paid a lot in state or local taxes

But itemizing does require extra work. You’ll need to keep organized records like receipts, statements, and invoices to support your deductions.

Standard Deduction vs Itemized Deduction: A Side-by-Side Comparison

Real-World Example: Comparing Itemized Deductions vs Standard Deduction

Let’s look at a simple example to illustrate the difference:

• Taxpayer A: Claims the standard deduction of $15,000
• Taxpayer B: Itemizes deductions totaling $16,000

Since Taxpayer B’s itemized deductions exceed the standard amount, itemizing saves them more money. However, only about 10% of taxpayers itemize because the standard deduction is often more advantageous.

Factors That Affect Your Decision

Here are some key factors that can help determine whether itemized deductions or standard deduction is right for you:

• High out-of-pocket medical expenses
• Significant mortgage interest
• Substantial state and local taxes
• Charitable giving throughout the year

Maximizing Your Tax Deductions: Tips and Tools

Whether you choose standard vs itemized deductions, you’ll want to ensure you’re making the most of your options. Here’s how:

Record-Keeping Tips

• Organize receipts by category (medical, mortgage, charitable, etc.)
• Use spreadsheets or digital tools to track expenses year-round
• Scan and store important documents for easy access

Let ezTaxReturn Do the Math for You

Not sure which option to choose? When you file with ezTaxReturn, we automatically compare the standard deduction vs itemized deduction based on your entries. You get the biggest deduction possible—without any guesswork.

Conclusion: Which Deduction Method Will Save You More?

Ultimately, the best choice depends on your unique financial situation. While the standard deduction offers simplicity, itemized deductions can provide larger tax savings if your qualified expenses are high enough.

The good news? ezTaxReturn makes it easy to compare itemized deductions vs standard deduction and file with confidence.

The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.