Most taxpayers never see Schedule A. They claim the standard deduction, move on, and file a simpler return. But with SALT limits raised under the One Big Beautiful Bill Act in 2025, itemizing now makes sense for more taxpayers than it did a few years ago. Understanding how the two methods compare is how you keep more of what you earn.
What Is the 2026 Standard Deduction?
The standard deduction is a fixed dollar amount the IRS lets you subtract from income with no documentation required. It's adjusted for inflation each year.
| Filing Status | 2026 Standard Deduction |
|---|---|
| Single | $15,750 |
| Married Filing Jointly | $31,500 |
| Head of Household | $23,625 |
| Married Filing Separately | $15,750 |
Taxpayers who are 65 or older, or legally blind, receive an additional deduction: $1,600 per qualifying condition if married, or $2,000 if single or head of household. A single taxpayer who is both 65 and blind would add $4,000 to the base $15,750, for a total of $19,750.
What Can You Deduct on Schedule A?
Itemizing means adding up every eligible expense and claiming the total instead of the standard deduction. The main categories are:
- State and local taxes (SALT): Income taxes or sales taxes plus property taxes, capped at $40,000 per household under the OBBBA for 2025 through 2028 (up from the prior $10,000 cap).
- Mortgage interest: Interest on up to $750,000 of acquisition debt on a primary and one secondary home. Pre-2018 loans carry a $1,000,000 limit.
- Charitable contributions: Cash and noncash gifts to qualified 501(c)(3) organizations. Generally limited to 60% of AGI for cash gifts.
- Medical expenses: Qualifying expenses that exceed 7.5% of your adjusted gross income under IRC Section 213. See the medical expense deduction guide for what qualifies.
- Casualty and theft losses: Only for losses in a federally declared disaster area.
Standard Deduction vs. Itemizing: A Direct Comparison
When Does Itemizing Beat the Standard Deduction?
You come out ahead by itemizing when your Schedule A total is larger than your standard deduction. Three situations commonly push people over the line:
High SALT liability. Under the OBBBA, you can now deduct up to $40,000 in state income taxes and property taxes. A homeowner in New York, California, or New Jersey paying $25,000 in state income tax and $10,000 in property taxes already has $35,000 in SALT before touching mortgage interest or charitable giving.
Significant mortgage interest. A $600,000 mortgage at 7% generates roughly $42,000 in interest payments in the first year alone. Combined with even modest SALT, itemizing is almost always the better choice.
Bunching charitable contributions. Taxpayers who donate regularly can bunch two years of gifts into one tax year to push their Schedule A total above the standard deduction, then take the standard deduction the next year. A donor-advised fund makes this strategy straightforward to execute.
Most Taxpayers Still Take the Standard Deduction
Despite the OBBBA's larger SALT cap, most taxpayers still benefit from the standard deduction. Renters have no mortgage interest. Taxpayers in states with no income tax (like Texas or Florida) have lower SALT bills. And the standard deduction itself grew with inflation, so the bar to beat is higher.
Run the comparison every year. Circumstances change: you sell a business, pay off a mortgage, move to a higher-tax state, or make a large charitable gift. What wins this year may not win next year.
If your tax situation is becoming more complex, contact TS CPA for a free consultation. We compare both methods every year and make sure you never leave deductions on the table. We respond within the same day.