Taxpayers reduce taxable income by claiming either the standard deduction or itemized deductions. Most taxpayers choose the larger amount to minimize tax liability.
Standard Deduction
The standard deduction reduces the amount of income subject to tax. Taxpayers generally benefit from taking the standard deduction when it exceeds allowable itemized deductions.
Taxpayers Not Eligible for the Standard Deduction
A taxpayer cannot claim the standard deduction if:
- Filing MFS and the other spouse itemizes
- Filing a return for a short tax year due to a change in accounting period
- They are a nonresident alien or dual‑status alien
Exceptions: A nonresident alien married to a U.S. citizen or resident at year‑end may elect to be treated as a resident and claim the standard deduction. Students and business apprentices from India may claim the standard deduction under Article 21 of the U.S.–India tax treaty.
Basic Standard Deduction (2025)
|
Filing Status |
Amount |
|
Single, MFS |
$15,750 |
|
Head of Household |
$23,625 |
|
MFJ, QSS |
$31,500 |
Additional Standard Deduction
Taxpayers receive an additional standard deduction if:
- Age 65 or older, and/or
- Blind (vision not better than 20/200)
A taxpayer who is both aged and blind receives two additional amounts. Applies to both spouses if married.
Additional Standard Deduction Amounts (2025)
|
Filing Status |
Amount per Condition |
|
MFJ, MFS, QSS |
$1,600 |
|
Single, HOH |
$2,000 |
A taxpayer who is both aged and blind receives:
- $3,200 (MFJ, MFS, QSS)
- $4,000 (Single, HOH)
Increased Standard Deduction for Disaster Losses
A taxpayer with a net qualified disaster loss who does not itemize may increase the standard deduction using Schedule A. See casualty and theft losses for details.
Standard Deduction for Dependents
A dependent’s standard deduction cannot exceed the regular standard deduction for their filing status.
For 2025, a dependent’s basic standard deduction is the greater of:
- $1,350, or
- Earned income + $450
Itemized Deductions
Taxpayers may choose to itemize deductions if:
- Itemized deductions exceed the standard deduction, or
- They are not eligible for the standard deduction
Itemized deductions include:
- Medical and dental expenses
- Taxes paid
- Interest paid
- Charitable contributions
- Casualty and theft losses from federally declared disasters
- Other itemized deductions
If spouses file separately and one itemizes, the other must itemize.
Phase‑Out of Itemized Deductions
- TCJA (2018–2025): Overall limitation on itemized deductions repealed
- One Big Beautiful Bill Act (2026+): Reinstates and modifies the overall limitation beginning in 2026
Other Itemized Deductions
These deductions are allowed even if not subject to the 2% floor:
- Amortizable bond premium
- Casualty/theft losses from income‑producing property
- Federal estate tax on income in respect of a decedent
- Gambling losses up to gambling winnings
- Impairment‑related work expenses for persons with disabilities
- Losses from Ponzi‑type schemes
- Repayments over $3,000 under claim of right
- Unrecovered investment in an annuity
- Certain partnership losses
Nondeductible Expenses
The following expenses cannot be deducted:
- Adoption expenses (credit may apply)
- IRA broker commissions
- Funeral/burial costs
- Campaign expenses
- Capital expenses
- Check‑writing fees
- Club dues, health spas
- Commuting costs
- Expenses related to tax‑exempt income
- Licenses (car, marriage, dog)
- Fines and penalties
- Hobby losses
- Home repairs, rent, insurance
- Home security systems
- Illegal bribes/kickbacks
- Investment seminars
- Life insurance premiums
- Lobbying expenses
- Losses on personal‑use property
- Lost cash or property
- Meals with coworkers or late‑work meals
- Personal disability insurance
- Personal legal expenses
- Personal travel
- Political contributions
- Professional accreditation fees
- Residential telephone line
- Stockholder meeting costs
- Unreceived wages or lost vacation
- Travel for another person
- Voluntary unemployment fund contributions
- Wristwatches
Miscellaneous Itemized Deductions (2% Floor)
- Repealed by TCJA (2018–2025)
- Permanently repealed by the One Big Beautiful Bill Act
Examples include:
- Unreimbursed employee expenses
- Tax preparation fees
- Appraisal fees
- Excess deductions on termination of estates/trusts
- Investment fees
- Legal fees to produce taxable income
- Losses on deposits in insolvent institutions
- IRA loss when fully distributed
- Repayments of income or Social Security
- Safe‑deposit box rental
- Dividend reinvestment plan charges
- Trustee fees for IRAs (if separately billed)