Every tax return in the US reduces taxable income by either the standard deduction — a fixed dollar amount set by the IRS each year — or an itemized total built line-by-line from actual deductible expenses like mortgage interest, charitable gifts, and state and local taxes. Before 2018, itemizing was common because the standard deduction was small. The 2017 Tax Cuts and Jobs Act nearly doubled the standard deduction while capping the state and local tax (SALT) deduction at $10,000, and that single change flipped the math for most Americans: today roughly 87% of filers take the standard deduction because their itemizable expenses simply don't add up to more. Still, homeowners with large mortgages, people who make substantial charitable gifts, and those with high out-of-pocket medical expenses can still come out ahead itemizing. The only way to know for sure is to actually add up your Schedule A expenses and compare them to the flat number.
Side-by-Side Comparison
| Criteria | Standard Deduction | Itemized Deduction |
|---|---|---|
| 2024 amount (single) | $14,600 flat | Varies — sum of actual expenses |
| 2024 amount (married filing jointly) | $29,200 flat | Varies — sum of actual expenses |
| Paperwork required | None — just check a box | Schedule A + receipts/records |
| Who typically benefits | Renters, modest mortgages, few deductions | Large mortgages, big charitable gifts, high medical bills |
| SALT deduction cap | N/A | Capped at $10,000 total |
| Audit risk | Very low — nothing to substantiate | Slightly higher — must justify claims |
| Percentage of filers using it | ~87% | ~13% |
When to Choose Each
Take the Standard Deduction When...
- You rent or have a small/no mortgage
- Your state and local taxes plus mortgage interest fall under $14,600 (single) / $29,200 (MFJ)
- You give modestly to charity in a typical year
- You want the simplest possible tax return with no receipts to track
- You had no major medical expenses this year
Itemize When...
- You have a large mortgage with substantial interest paid
- You made large charitable donations (cash or appreciated stock)
- You had unreimbursed medical expenses exceeding 7.5% of AGI
- You paid close to or over $10,000 in state/local/property taxes
- Your itemizable total clearly exceeds the standard deduction after adding it up
Worked Example
A married couple filing jointly has: $11,000 in mortgage interest, $10,000 in SALT (capped, even though property + state tax totaled $13,500), and $4,000 in charitable donations.
Even with a sizable mortgage and real charitable giving, this couple's itemized total ($25,000) still falls short of the standard deduction ($29,200) — so they'd take the standard deduction and reduce taxable income by an extra $4,200 compared to itemizing. This is exactly the math that pushed the majority of American taxpayers away from itemizing after 2017.
*Figures above use 2024 IRS amounts and are illustrative estimates, not tax advice. Consult a tax professional or IRS Publication 501 for your specific situation.