Pros and Cons of Standard or Itemized Deductions On Filing Taxes
If you have numerous itemized deductions such as mortgage interest, charitable contributions, etc., it may make sense for you to itemize your deductions instead of using the standard deduction for your tax filing status. However, with change in tax law capping some itemized deductions while increasing the standard deduction it might be better not to itemize and take the standard deduction. The standard deduction for 2026 is $16,100 for single filers and $32,200 for those married filing jointly. Calculate below to find out what is best for your situation when it comes to filing your taxes.
If you are expecting either a large refund or a significant tax bill, use another calculator to determine if you should adjust your payroll withholdings.
How Will the One Big Beautiful Bill Act (OBBBA) Impact Me?
The OBBBA permanently eliminated personal exemptions. State, local and property tax deductions for those itemizing will be capped at $40,400 for 2026. Effective for 2025 through 2028, individuals who are 65 or older will be able to claim an additional deduction for $6,000, whether they choose to itemize or not. Mortgage interest for residential homes remains deductible for mortgages up to $750,000. Mortgage interest premiums (PMI) may now be treated as mortgage interest. The ceiling for charitable donations as 60% of AGI is now permanent. Use this calculator to determine if you should itemize or take the standard deduction.
The Pros and Cons of Standard Deduction and Itemized Deductions
Standard tax deductions have a few advantages:
- You don’t have to keep receipts or determine what expenses of yours may be deductible
- You qualify even if you don’t have any expenses that qualify for itemized deductions
- You don’t have to list and claim lots of separate deductions or worry about what is a deductible and what is not
- You won’t have to account to the IRS why you claimed a specific itemized deductible if you are ever audited.
However, the standard deduction also has some disadvantages. The most significant one is that there is a dollar limit. Even if you would qualify for more deductions if you itemized them, standard deductions only allow you to reduce your tax bill by a specific amount.
Itemized deductions have a few advantages, too:
- They can save you more on your tax bill, especially if you have paid a significant amount in mortgage interest, medical expenses, or made considerable charitable contributions.
- You get to choose which deductions to claim
These deductions have some drawbacks:
- The IRS may challenge your itemized deductions.
- You need to file and claim deductions, which means you need to keep track of them.
- You need to keep proof of your deductions in case you are ever audited.
- If your AGI (adjusted gross income) is above a specific limit, some of your itemized deductions may be limited.
Use the itemized tax deduction calculator at Money Help Center to determine whether your itemized deductions would save you more than the standard deduction, so you can file with confidence. Also, estimate your tax liability for 2026.
*updated April 2026