Itemized deductions vs standard

A tax deduction reduces your taxable income, which in turn can lower your tax bill. There are generally two ways you can claim deductions on your federal income tax return: you can itemize deductions, or you can take the standard deduction.

A review of the standard deduction amount and what qualifies for itemizing can help you determine which is right for you.

Why itemize?

When it comes to deductions, you generally want to choose the option that lowers your taxable income the most.

The standard deduction is a fixed amount, while itemized deductions are made up of a list of eligible expenses.

What is the standard deduction?

While the standard deduction is a specific amount provided by the IRS, itemizing deductions requires tracking and documentation.

You can use IRS Schedule A (Form 1040) to itemize your mortgage interest expense, charitable donations, medical and dental expenses, state taxes and other itemizable expenses to see whether your itemized deductions will exceed your standard deduction.

The standard deduction varies based on your incom

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