What's the Difference Between the Standard Deduction and Itemized Deductions?

When you file your taxes, you can reduce your taxable income in one of two ways: by taking the standard deduction or by itemizing your deductions. The standard deduction is a flat amount the IRS sets each year based on your filing status — for 2024, it's $14,600 for single filers and $29,200 for married couples filing jointly. Itemizing means adding up your actual deductible expenses, such as mortgage interest, state and local taxes, and charitable contributions, to see if the total beats the standard deduction. Most taxpayers take the standard deduction because it's simpler and often larger than what they'd get by itemizing. If you had unusually large deductible expenses during the year, it's worth doing the math to see which option saves you more.