Taxpayers can choose to itemize certain deductions or take the standard deduction based on their filing status. Itemizing deductions saves tax if the total exceeds the standard deduction. The number of taxpayers who itemize dropped dramatically after the Tax Cuts and Jobs Act (TCJA) nearly doubled the standard deduction. The OBBBA increases it further. The standard deduction for 2025 is:
- $15,750 for single filers and married individuals filing separately,
- $23,625 for heads of households, and
- $31,500 for married couples filing jointly.
Taxpayers age 65 or older or blind are eligible for an additional standard deduction of $2,000 or, for joint filers, $1,600 per spouse age 65 or older or blind. (For taxpayers both 65 or older and blind, the additional deduction is doubled.)
But other OBBBA changes could make itemizing more beneficial. For example, if you’ve been claiming the standard deduction recently, the expanded state and local tax (SALT) deduction might cause your total itemized deductions to exceed your standard deduction for 2025. If it does, you might benefit from accelerating other itemized deductions into 2025. In addition to SALT, potential itemized deductions include:
- Qualified medical and dental expenses (to the extent that they exceed 7.5% of your adjusted gross income),
- Home mortgage interest (generally on up to $750,000 of home mortgage debt on a principal residence and a second residence),
- Casualty losses (from a federally declared disaster), and
- Charitable contributions.
Note, too, that higher earners will face a limit on their itemized deductions in 2026. The OBBBA effectively caps the value of itemized deductions for taxpayers in the highest tax bracket (37%) at 35 cents per dollar, compared with 37 cents per dollar this year. If you’re among that group, you may want to accelerate itemized deductions into 2025 to leverage the full value.
Jeff Rislov, CPA and Partner comments,
“Don’t assume the standard deduction is automatically best for 2025. We can help you evaluate your potential itemized deductions—especially in light of the new SALT rules—to ensure you’re not leaving savings on the table. If you’d like to review how these changes could affect your 2025 tax strategy, our team can help model your options and identify the most tax-efficient approach.”
