Finance Maxxing
Deductions & Credits
Standard Deduction
Fixed deduction amount based on filing status.
The standard deduction reduces your AGI to arrive at taxable income. Most taxpayers (~90%) take the standard deduction rather than itemizing.
2025 Standard Deduction Amounts
| Filing Status | Amount | Additional (65+ or blind) |
|---|---|---|
| Single | ~$15,000 | +$1,950 |
| Married Filing Jointly | ~$30,000 | +$1,550 per spouse |
| Married Filing Separately | ~$15,000 | +$1,550 |
| Head of Household | ~$22,500 | +$1,950 |
When to Itemize Instead
Itemize when your total itemizable expenses exceed the standard deduction:
- Mortgage interest on loans up to $750K
- SALT (state/local taxes + property taxes, capped at $40K for 2025)
- Charitable donations
- Medical expenses exceeding 7.5% of AGI
Tip: If you're close to the itemizing threshold, consider "bunching" deductions — making two years of charitable donations in one year to exceed the threshold, then taking the standard deduction the next year.
Sources
Related Terms
More in Deductions & Credits
Itemized Deductions
Schedule A deductions that replace the standard deduction.
Above-the-Line Deductions
Deductions taken before AGI, regardless of itemizing.
SALT Deduction
State and local tax deduction, capped at $40,000 for 2025.
Mortgage Interest Deduction
Deduction for interest on up to $750K of mortgage debt.
Charitable Contributions
Tax deduction for donations to qualifying organizations.
Student Loan Interest Deduction
Up to $2,500 above-the-line deduction.
Medical Expense Deduction
Deductible medical costs exceeding 7.5% of AGI.