Itemized vs Standard Deduction Calculator

For 2025 (OBBBA §70103 + Rev. Proc. 2024-40): $15,750 single and MFS, $31,500 MFJ and qualifying widow(er), $23,625 head of household. For 2026 (Rev. Proc. 2025-32 §3.13): $16,100 single, $32,200 MFJ. OBBBA permanently extended the larger TCJA-style standard deduction with annual inflation indexing. Age-65+ or blind taxpayers get additional amounts under §63(f) — $2,000 for unmarried (single/HoH) and $1,600 for each qualifying married spouse in 2025 (Rev. Proc. 2024-40 §3.14).

For 2025 the State and Local Tax (SALT) deduction is capped at $40,000 ($20,000 MFS), raised from $10,000 by OBBBA §70120. The cap phases DOWN at 30% per dollar of MAGI above $500,000 ($250,000 MFS), with a floor of $10,000 ($5,000 MFS). For 2026 the base is $40,400 with the same floor. Counts: state income tax, local income tax, property tax — combined. Sales tax can substitute for state income tax (one or the other, not both).

Itemize when your total allowable itemized deductions exceed your filing-status standard deduction. Most common itemizers: homeowners with mortgage interest + property tax + state income tax + charitable contributions that beat the $31,500 MFJ (2025) bar. After TCJA capped SALT and raised the standard deduction, the share of itemizers fell from ~30% to ~10% of returns. OBBBA's larger $40,000 SALT cap brings high-tax-state homeowners back into itemizing.

Only the amount above 7.5% of AGI is deductible. At $100k AGI the floor is $7,500 — the first $7,500 of medical bills count toward NOTHING. After exceeding the floor, qualifying expenses include doctor/hospital fees, prescription drugs, dental, vision, medical mileage at 21¢/mile (2025), long-term-care insurance premiums (age-capped under §213(d)(10)), and capital expenses for medical accommodations. NOT deductible: cosmetic surgery, gym memberships, vitamins/supplements, OTC drugs without prescription, funeral expenses.

Mortgage interest is deductible on up to $750,000 of "acquisition indebtedness" (mortgage taken to buy/build/improve) for loans originated after Dec 15, 2017. Grandfathered loans before that date keep the prior $1,000,000 cap. Home-equity loans (HELOC) are deductible ONLY if used for home acquisition/improvement; cash-out for personal use is NOT deductible (TCJA §11043). Mortgage interest on a SECOND home is deductible within the combined cap. Reported on Schedule A line 8.

Cash gifts to public charities: deductible up to 60% of AGI. Appreciated-property gifts (long-term-held stock): up to 30% of AGI. Excess carries forward 5 years under §170(d). OBBBA §70202 added a 0.5% AGI FLOOR on itemized charitable contributions starting 2026 (0.5% of AGI must be subtracted from total charitable before the 60% cap applies). 2026 also added a SEPARATE $1,000 single / $2,000 MFJ above-the-line cash charity deduction for non-itemizers under OBBBA §70424.

IRC §164(b)(5)(A) lets you elect to deduct STATE+LOCAL SALES tax instead of state income tax (within the same SALT cap). Worth electing in states with no income tax (TX, FL, NV, WA, TN, SD, WY, AK, NH). The IRS publishes Publication 600 sales-tax tables based on state + family size + AGI, then add big-ticket items (cars, boats) actually paid. Also allowed: add sales tax from documented major purchases on top of the table amount.

Yes — IRC §63(c)(6)(A). If you file Married Filing Separately and one spouse itemizes, the other spouse MUST also itemize (cannot take the standard deduction). Same rule reverses: if one takes standard, both must. This prevents couples from arbitrage by having the lower-income spouse itemize and the higher-income spouse take the standard. The /marriage-tax-calculator/ models the MFS vs MFJ split.

IRC §63(f) provides an extra standard deduction for taxpayers ≥65 or blind. For 2025: $2,000 each for unmarried (single/HoH); $1,600 each for married (so an MFJ couple both ≥65 gets $31,500 + $3,200 = $34,700 standard deduction). A blind 70-year-old single filer gets $15,750 + $4,000 = $19,750. OBBBA also added a temporary $4,000-per-senior bonus deduction 2025-2028 (§70504) — separate from the §63(f) add-on, claimed regardless of itemizing.

Depends on state conformity. About 25 states require federal itemizing to itemize state (conforming). Others (CA, NY, OR, AZ) allow you to take federal standard but itemize state. A few states have NO itemize option at all (e.g., MT post-2024 reform — uses federal AGI directly). Check your state revenue website. For SALT specifically: the federal cap is federal-only — many high-tax states have created PTET (pass-through entity tax) workarounds for owners to deduct state taxes via the entity rather than personally.

TCJA §11044 limited personal casualty losses to FEDERALLY-DECLARED DISASTER AREAS only — through 2025. OBBBA extended this through 2028. So losses from house fires, ordinary theft, hurricane damage NOT in a declared disaster area are NOT deductible. Disaster losses follow §165(h): subtract $100 per loss + 10% of AGI floor, then deduct the remainder. Form 4684 reconciles. Business casualty losses (Schedule C/E property) are not subject to the personal restriction.

Gambling losses are deductible on Schedule A line 16 — but ONLY up to the amount of gambling winnings reported on Schedule 1 line 8b (under §165(d)). You can't deduct net gambling losses. Tracked via a contemporaneous gambling diary or session log. Casino W-2G forms ($1,200+ slot, $5,000+ poker tournament) are reported, but you self-report the rest. Professional gamblers can use Schedule C instead — but face strict §183 hobby-loss tests.