For 2024, single filers get a $14,600 standard deduction, married couples $29,200. You can instead itemize deductions like mortgage interest, charitable donations, and medical expenses over 7.5% of income, capped at $10,000 for state and local taxes. Pick whichever saves you more.
Want to pay less on taxes? Let's talk standard versus itemized deductions. One is simple and quick, the other requires some planning, but both will save you money. And since we're all about keeping your hard-earned cash out of the greedy hands of the IRS, let's break it down. First off, deductions lower your taxable income. That means less of your money gets used to determine the taxes you pay. You get to pick between standard deduction, the easy version, or itemized deductions, which is more work but possibly more savings. The standard deduction is simple— no receipts, no tracking expenses, just a flat deduction based on your filing status. For income made in 2024, that's $14,600 for single filers, $29,200 for married filing jointly, and $21,900 for head of household. If your deductible expenses don't add up to more than this, it's a great option. Most taxpayers qualify for the standard deduction, but there are a few exceptions. You can take this deduction if you are a U.S. citizen or resident alien, you don't itemize deductions, and you are not a married individual filing separately whose spouse is itemizing. However, if you're claimed as a dependent on someone else's tax return, your standard deduction is limited, so don't count on the full amount. And certain nonresident aliens may not be eligible. Now, if you're someone with a lot of deductible expenses, itemizing might be your best choice. Here's what you can deduct: mortgage interest, state and local taxes up to $10,000, medical expenses, but only the part that exceeds 7.5% of your income, and charitable donations. If adding these up gets you over the standard deduction, then itemizing is for you. Here's what you need to do. Gather your documents: receipts, mortgage statements, medical bills, charitable donation records, anything that proves your deductible expenses. Use Schedule A, Form 1040. This is where you list each deduction category. Do the math, add up your deductions and see if they exceed the standard deduction for your filing status. If your total deductions are higher, file with confidence. You just legally kept more of your money. If the total is less, stick with a standard deduction. A tip you can utilize now is keeping organized records year-round. This makes itemizing a lot less painful when tax season hits. So how do you decide? In short, if your itemized deductions are higher than the standard deduction, itemize. If not, use standard. And if math isn't your thing, please feel free to reach out to us at Inside Tax. The IRS gets enough from you already. Whether you take standard deduction or go with itemizing, the goal is the same: keeping more of your money. Like and subscribe for more tax tips and leave a comment below if you have any questions. And remember, the IRS sucks.
