Can I Itemize Deductions or Should I Take the Standard Deduction?

Which Is Better for My Situation—and What Deductible Expenses Count?**

When filing your U.S. federal tax return, one of the most important decisions you make is whether to take the standard deduction or itemize your deductions. This choice directly affects how much of your income is subject to tax—and how much you ultimately pay or receive as a refund.

Many people simply claim the standard deduction because it’s fast and easy. But for others—especially homeowners, high medical spenders, charitable givers, or people with significant state and local taxes—itemizing can save thousands.

Below, we break down how to choose the better option, who benefits from itemizing, and exactly which deductions count when you choose to itemize.

1. Understanding the Standard Deduction

The standard deduction is a fixed amount the IRS lets you subtract from your taxable income—no questions asked. There’s no need to track receipts or calculate eligible expenses.

2024 Standard Deduction Amounts

(These increase slightly each year for inflation.)

• Single or Married Filing Separately: $14,600

• Married Filing Jointly: $29,200

• Head of Household: $21,900

If you’re 65 or older or blind, you can claim an additional standard deduction.

Why people choose the standard deduction

• It’s simple: no recordkeeping or calculations.

• It’s often higher than itemized deductions—especially for renters or taxpayers with low deductible expenses.

• Many people no longer qualify for certain itemized write-offs after tax law changes under the Tax Cuts and Jobs Act (TCJA).

If your possible itemized deductions do not exceed your standard deduction, you should almost always take the standard deduction.

2. Understanding Itemized Deductions

When you itemize, you list eligible deductible expenses on Schedule A of your tax return. Your total itemized deduction replaces the standard deduction.

Itemizing makes sense only when your allowable expenses exceed the standard deduction for your filing status.

Who usually benefits from itemizing?

You might benefit if you have:

• A mortgage with significant interest

• High medical expenses

• Large charitable contributions

• High state and local taxes (SALT)

• Casualty or theft losses due to a federally declared disaster

• Certain miscellaneous work-related expenses (limited categories)

Let’s explore each category.

3. What Expenses Can You Itemize?

Below are the major types of itemized deductions allowed on Schedule A.

A. Medical and Dental Expenses

You can deduct unreimbursed medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI).

Examples of deductible expenses:

• Doctor visits, surgeries, hospital care

• Prescription medications

• Dental and vision care (including glasses/contacts)

• Mental health treatments

• Long-term care services

• Medical equipment (wheelchairs, CPAP machines, etc.)

• Health insurance premiums if you paid them out of pocket

• Mileage for medical travel

Example:
If your AGI is $60,000, 7.5% is $4,500.
If you spent $8,000 in qualifying medical costs, the deductible amount is $8,000 – $4,500 = $3,500.

B. State and Local Taxes (SALT)

The IRS allows you to deduct either:

• State income taxes, OR

• State and local sales taxes

Plus:

• Property taxes

However, the SALT cap is $10,000 ($5,000 if married filing separately).
This is a major limitation for taxpayers in high-tax states like CA, NY, NJ, or IL.

Examples of deductible SALT expenses:

• State income tax withheld from your paycheck

• Estimated state tax payments

• Property taxes on your home or land

• Sales tax (if elected instead of income tax)

C. Mortgage Interest and Points

If you own a home, mortgage interest is often your biggest itemized deduction.

You can generally deduct:

• Interest on up to $750,000 of mortgage debt (for loans after 12/15/2017)

• Interest on up to $1 million of mortgage debt for older loans

• Points paid to get a lower interest rate

• Mortgage insurance premiums (some years extend this deduction)

D. Charitable Contributions

You can deduct donations made to qualified charities if you itemize.

Eligible donations include:

• Cash or check contributions

• Donations of property (clothing, furniture, electronics, etc.)

• Donated vehicles

• Out-of-pocket costs for volunteer work

Note: You must have documentation (receipts, bank records, acknowledgment letters).

E. Casualty and Theft Losses

You can deduct losses only if they occurred due to a federally declared disaster.
The calculation is based on:

• The value of lost/damaged property

• Insurance reimbursements

• A $100-per-event and 10%-of-AGI reduction

This deduction is now rare, but still relevant during major disasters like hurricanes or wildfires.

F. Miscellaneous Itemized Deductions (Limited Categories)

Most miscellaneous deductions were eliminated by recent tax law changes.
However, a few categories still remain:

• Gambling losses (up to the amount of gambling winnings)

• Impairment-related work expenses for disabled individuals

• Estate taxes paid on income in respect of a decedent

• Certain unreimbursed work expenses for specific professions (e.g., Armed Forces reservists, qualified performing artists, fee-basis government officials)

4. So—Should You Itemize or Take the Standard Deduction?

The decision usually comes down to comparing two numbers:

✔ 1. Your standard deduction

vs.

✔ 2. Your total itemized deductions

Whichever number is larger gives you the bigger tax break.

5. Who Should Consider Itemizing? (Common Scenarios)

Below are typical life situations where itemizing is often worthwhile.

Homeowners with a New Mortgage

Mortgage interest in the early years of a loan is high—sometimes $10,000–$20,000 annually.
Combined with property taxes and charitable contributions, itemizing can exceed the standard deduction.

Taxpayers in High-Tax States

If you live in a state with high income or property taxes, even with the $10,000 SALT cap, itemizing may still exceed your standard deduction.

People Who Donate Generously

If you give thousands each year to charity, your charitable contributions may push your total itemized deductions above the standard deduction.

Individuals With Major Medical Expenses

A surgery, extended illness, or long-term care costs could generate large deductible medical expenses—especially if insurance did not cover everything.

Victims of Federally Declared Disasters

Casualty losses may create large deductions that make itemizing beneficial.

Self-Employed or Independent Professionals

While business expenses are handled on Schedule C, not itemization, many self-employed individuals also have home mortgages, charitable contributions, and high taxes that make itemizing worthwhile.

6. Who Should Take the Standard Deduction? (Common Scenarios)

In many situations, the standard deduction will be larger.

Renters with Low State Taxes

If you rent and live in a low-tax state, you likely don’t have enough itemizable expenses to beat the standard deduction.

People Without Significant Medical or Charitable Expenses

If your only deductible expenses are minor or infrequent, itemizing will not provide a benefit.

Seniors with No Mortgage

If your home is paid off, you lose one of the largest potential itemized deductions—mortgage interest.

7. How to Calculate Your Itemized Deductions (Step-by-Step)

Here’s how to estimate whether itemizing is better:

Step 1: Add Up Your Potential Deductions

Make a quick list:

• Mortgage interest

• Property taxes

• State income or sales tax (up to $10,000)

• Charitable contributions

• Eligible medical expenses above 7.5% of AGI

• Disaster losses

• Miscellaneous allowed expenses

Step 2: Compare the Total to the Standard Deduction

If:

• Itemized total > standard deduction → Itemize

• Itemized total < standard deduction → Take standard deduction

Step 3: Consider the Time Cost

Itemizing requires:

• Organizing receipts

• Gathering tax forms

• Some additional math

• Possibly paying a bit more for tax preparation

If the tax savings are small, it might not be worth the effort.

8. Special Situations to Consider

Married Filing Separately Rules

If one spouse itemizes, the other spouse must also itemize, even if their itemized deductions are small.
This can sometimes make the standard deduction unavailable.

Combining Both Methods Is Not Allowed

You cannot:

• Take the standard deduction and

• Deduct individual expenses like mortgage interest

You must choose one or the other.

Tax Software Can Compare Automatically

Tax software like TurboTax, H&R Block, and others automatically calculate both options and recommend the larger deduction.
If your situation is borderline, using software can help reassure you.

9. How Recent Tax Law Changes Affected Itemizing

The Tax Cuts and Jobs Act (TCJA) made several major changes that affect your choice:

• Nearly doubled the standard deduction

• Limited SALT deduction to $10,000

• Eliminated many miscellaneous itemized deductions

• Restricted mortgage interest deductions

As a result, fewer taxpayers itemize today—around 10%, compared to about 30% prior to the law changes.

10. Final Decision Guide: Should YOU Itemize?

Here’s a quick yes/no checklist.

You should consider itemizing if you can answer “yes” to any of these:

• Do I pay significant mortgage interest?

• Are my state/local taxes close to or above $10,000?

• Did I donate a large amount to charity?

• Do I have unreimbursed medical expenses exceeding 7.5% of AGI?

• Was I affected by a federally declared disaster?

• Are my total itemizable expenses greater than the standard deduction?

You should take the standard deduction if you answer “yes” to these:

• Are my deductible expenses small?

• Do I rent and have low state/local taxes?

• Do I want the simplest tax-filing method?

• Do I lack significant medical or charitable expenses?

11. Summary

Choosing between the standard deduction and itemizing can significantly affect your tax bill.

Take the standard deduction if:

• Your itemized deductions are less than the standard deduction

• Your records of expenses are limited

• You want the simplest filing method

Itemize your deductions if:

• Your deductible expenses exceed your standard deduction

• You own a home, pay high taxes, donate generously, or had major medical costs

The best choice is the one that reduces your taxable income the most. Running the numbers (or using tax software) is the most reliable way to confirm the right option for your situation.