You can lower your taxable income by taking either the standard deduction or itemizing. You choose whichever is larger.
The standard deduction
For 2026 the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly and $24,150 for heads of household. Most taxpayers take it because it is simple and large.
What you can itemize
Itemized deductions include state and local taxes up to a cap, home mortgage interest, charitable gifts and medical expenses above 7.5% of adjusted gross income. If their total exceeds the standard deduction, itemizing saves tax.
Strategies
Bunching deductions, such as making two years of charitable gifts in one year with a donor-advised fund, can let you itemize in alternate years. Keep records of receipts and acknowledgments for any deduction you claim.
Try the numbers
Use our Standard vs Itemized Deduction Calculator to see this in practice. With its default example (AGI: $120,000; Filing status: Single; Mortgage interest: $14,000), it shows itemize: $29,000. Adjust the inputs to match your situation.
Key takeaways
- Take the larger of the standard or itemized deduction.
- Mortgage interest, SALT and charity are the big three.
- Bunching can unlock itemizing every other year.
This article is for general education and is not personalized financial, tax or legal advice. Rules and limits change; confirm current figures with official sources such as IRS.gov, SSA.gov and StudentAid.gov, or consult a qualified professional. © 2026 FinanzCalc.