Tax
Standard Deduction vs Itemizing: Which Saves You More?
Every year, you choose between taking the standard deduction or itemizing your deductions. The right choice can save hundreds or thousands of dollars — but most taxpayers benefit from the standard deduction after the 2017 tax reform.
2024 Standard Deduction Amounts
| Filing Status | Standard Deduction |
|---|---|
| Single | $14,600 |
| Married Filing Jointly | $29,200 |
| Head of Household | $21,900 |
When to Itemize
Itemize when your deductible expenses exceed your standard deduction. Common itemized deductions:
- Mortgage interest — often the biggest itemized deduction
- State and local taxes (SALT) — capped at $10,000
- Charitable contributions — cash and non-cash donations
- Medical expenses — exceeding 7.5% of adjusted gross income
If you own a home with a large mortgage and pay high state income taxes, itemizing may save you thousands. Renters in low-tax states almost always benefit from the standard deduction.
Deduction Bunching Strategy
If your itemized deductions are close to the standard deduction, consider "bunching" — concentrate two years of charitable donations into one year to itemize that year, then take the standard deduction the next.