Standard vs Itemized Deductions: Which to Choose?
Published on January 2026
90% of taxpayers take the standard deduction—but 5-10% who should itemize don't, leaving $2,000-$5,000 on the table. The 2017 tax reform doubled the standard deduction ($14,600 single, $29,200 married for 2026), making itemizing worthwhile only for those with large mortgages, major charitable giving, or substantial medical expenses.
The problem? Taxpayers assume they should take the standard deduction without calculating itemized deductions, or they itemize out of habit even though the standard deduction saves more. The $10,000 SALT cap (state/local taxes) crushed itemizing benefits for high-tax-state residents. One wrong choice—like itemizing $25K when standard is $29,200—costs $1,050+ in unnecessary taxes (22% bracket × $4,200 difference).
This guide shows you exactly when to itemize and when to take the standard deduction—plus the "bunching" strategy that maximizes both. We explain 2026 standard deduction amounts ($14,600/$29,200/$21,900), itemized deduction categories (mortgage interest, SALT, charity, medical), the $10,000 SALT cap impact, and bunching (concentrate 2 years' donations in 1 year to alternate between itemizing and standard).
One of the most important decisions you'll make when filing taxes is whether to take the standard deduction or itemize your deductions. This choice can significantly impact your tax bill, and understanding the differences will help you maximize your savings.
Understanding the Standard Deduction
The standard deduction is a fixed dollar amount that reduces your taxable income. For 2026, the standard deduction is $14,600 for single filers, $29,200 for married couples filing jointly, and $21,900 for heads of household. If you're 65 or older or blind, you receive an additional standard deduction.
The standard deduction is simple and requires no record-keeping or documentation. Most taxpayers—about 90%—take the standard deduction because it's larger than their total itemized deductions and involves less paperwork.
What Are Itemized Deductions?
Itemized deductions allow you to deduct specific expenses you paid during the year. Common itemized deductions include mortgage interest, state and local taxes (up to $10,000), charitable contributions, and medical expenses exceeding 7.5% of your adjusted gross income.
To itemize, you must complete Schedule A and attach it to your tax return. You'll need to maintain detailed records and receipts for all claimed deductions. The IRS may request documentation if you're audited, so keeping organized records is essential.
When to Choose Itemized Deductions
Itemizing makes sense when your total deductible expenses exceed the standard deduction for your filing status. Homeowners often benefit from itemizing because mortgage interest and property taxes can be substantial deductions.
Other situations where itemizing may benefit you include making large charitable donations, having significant medical expenses, experiencing casualty or theft losses, or paying high state and local taxes (though remember the $10,000 SALT cap).
Calculate both options before deciding. Add up all your potential itemized deductions and compare the total to the standard deduction. Choose whichever gives you the larger deduction and lower tax bill.
Strategies to Maximize Your Deductions
If you're close to the standard deduction threshold, consider bunching deductions. This strategy involves timing deductible expenses to concentrate them in alternating years. For example, make two years' worth of charitable donations in one year to exceed the standard deduction, then take the standard deduction the following year.
Bunching works well with charitable donations, medical expenses, and other controllable expenses. By alternating between itemizing and taking the standard deduction, you can maximize your total tax savings over multiple years.
Record-Keeping Requirements
If you choose to itemize, maintain detailed records throughout the year. Keep receipts for charitable donations, medical bills, property tax statements, mortgage interest statements (Form 1098), and records of other deductible expenses.
The IRS generally recommends keeping tax records for three years, but some situations require longer retention. Digital organization tools and apps can help you track expenses and store receipts electronically.
Frequently Asked Questions
What is the standard deduction for 2026?
Standard deduction for 2026: $14,600 single, $29,200 married filing jointly, $21,900 head of household. Additional amount if 65+ or blind: $1,950 single/$1,550 married. About 90% of taxpayers take the standard deduction because it exceeds their itemized deductions and requires no record-keeping.
What expenses can I deduct if I itemize?
Major itemized deductions: Mortgage interest (on loans up to $750,000), state and local taxes—SALT (capped at $10,000), charitable donations, medical expenses exceeding 7.5% of AGI, casualty and theft losses (from federally declared disasters), and investment interest expense. List all deductions on Schedule A.
Should I take the standard deduction or itemize?
Itemize if your total deductions exceed the standard deduction for your filing status. Common itemizers: Homeowners with large mortgages + property taxes, high charitable donors, those with major medical expenses, or taxpayers in high-tax states (though SALT cap limits benefit). Calculate both and choose the larger amount.
What is the SALT deduction cap?
State and local tax (SALT) deduction capped at $10,000 ($5,000 married filing separately). Includes state income taxes + property taxes (or state sales tax instead of income tax). This cap significantly reduced itemized deductions for high-earners in high-tax states like CA, NY, NJ, CT. Cap expires December 31, 2026 unless extended.
What is deduction bunching and how does it work?
Bunching concentrates deductible expenses into alternating years to exceed the standard deduction. Strategy: In Year 1, make 2 years' worth of charitable donations, pay Jan-Dec property taxes in Dec, schedule elective medical procedures—itemize and deduct $35K. Year 2: Take standard deduction $29,200. Total 2-year deductions: $64,200 vs. $58,400 if you took standard both years.
Can I deduct medical expenses if I itemize?
Yes, but only medical expenses exceeding 7.5% of AGI are deductible. Example: $100K AGI = $7,500 threshold. If medical expenses are $12,000, deduct $4,500 ($12,000 - $7,500). Qualified expenses: Doctor visits, prescriptions, insurance premiums (not employer-paid), dental, vision, hospital bills, medical equipment, long-term care.
Do I need receipts to claim itemized deductions?
YES. Keep all documentation: Mortgage interest statement (Form 1098), property tax bills, charitable donation receipts (any amount), medical bills and insurance statements, state tax payment records. IRS can audit within 3 years (longer if fraud). No receipts = disallowed deductions + penalties. Use digital tools to organize receipts year-round.
Can I switch between standard and itemized deductions each year?
YES! You can choose whichever method saves more each year. This flexibility enables bunching strategies: Itemize in high-deduction years, take standard in low-deduction years. No penalty for switching. However, once you file, you cannot change deduction method for that year (unless you amend your return within 3 years).
Calculate Both—Choose the Bigger Number, Save More
You now know the 2026 standard deduction amounts ($14,600/$29,200/$21,900), itemized deduction categories (mortgage interest, SALT capped at $10K, charity, medical above 7.5% AGI), when to itemize (total exceeds standard), and the bunching strategy (alternate itemizing and standard every other year). The decision is simple math—but most people skip the calculation.
The difference between guessing and calculating? A homeowner who blindly takes the standard $29,200 when their itemized deductions total $32,000 overpays $670 in taxes (22% bracket × $2,800 difference). Bunching adds another $1,000-$3,000 in savings by strategically timing donations. Over 30 years of tax returns, this one decision swings $20,000-$50,000.
Next step: Use our free Deduction Tracker to automatically total your itemized deductions throughout the year. Enter mortgage interest, property taxes, donations, and medical expenses—see real-time whether itemizing beats the standard deduction. No year-end surprises.