Understanding when itemizing makes sense vs. taking the standard deduction
This page is for educational and informational purposes only. Nothing here constitutes financial, tax, legal, or investment advice. Tax situations vary significantly based on individual circumstances. Always consult with a qualified tax professional or CPA before making any tax-related decisions. Tax laws change frequently and this information may not reflect the most current regulations.
Enter your numbers to compare standard vs. itemized deductions
This is an estimate for educational purposes only. Actual tax situations may vary.
Key changes coming as TCJA provisions evolve
| Provision | 2025 | 2026 |
|---|---|---|
| SALT Cap | $10,000 | $10,000 (unchanged) |
| Charitable Donations | Must itemize to deduct | $2,000 above-the-line No itemizing required for first $2K |
| Standard Deduction (MFJ) | ~$30,000 | ~$31,000 (inflation adjusted) |
| Mortgage Interest Limit | $750K debt cap | $750K (unchanged) |
| TCJA Expiration | In effect | Expires end of 2025 Unless extended by Congress |
Starting in 2026, you can deduct up to $2,000 in charitable donations even if you take the standard deduction. This is an "above-the-line" deduction, meaning it reduces your AGI directly — no itemizing required.
The Tax Cuts and Jobs Act (TCJA) is set to expire at the end of 2025. If not extended, many provisions could revert to pre-2017 rules — including higher SALT caps and different standard deduction amounts. Watch for Congressional action in 2025.
Often the better choice for high earners
Primary driver for itemizing
State and Local Tax cap limits benefits
Third major itemized deduction
Without significant mortgage interest, the standard deduction is almost always better.
Medical expenses are only deductible when they exceed 7.5% of your AGI. For someone earning $600K+, that means you'd need over $45,000 in qualifying medical expenses before any deduction kicks in. For most high earners, this deduction is effectively unavailable in a typical year.
For high earners ($600K+) without a primary residence mortgage, the standard deduction almost always wins. The SALT cap severely limits property tax benefits, and without mortgage interest as the main itemized deduction driver, it's hard to exceed the standard deduction threshold.
If you have a mortgage near the $750K debt limit with a high interest rate, run the numbers — mortgage interest could push you over the itemized threshold.
Reminder: This content is for educational purposes only and does not constitute tax, financial, or legal advice. Consult a qualified professional for advice specific to your situation. Tax laws are subject to change.