What are itemized deductions versus the standard deduction?

Created by Shubha Bisht, Modified on Wed, 24 Jan at 3:23 PM by Shubha Bisht

What are itemized deductions?

Itemized deductions are expenses that reduce your taxable income. Itemized deductions include, but are not limited to:

amounts paid for mortgage interest
real estate taxes
state and local income or sales taxes
personal property taxes
charitable contributions
out-of-pocket medical and dental expenses
disaster losses

When could I use itemized deductions?

In most cases, taxpayers itemize if their allowable itemized deductions are greater than their standard deductions or if they can't use the standard deduction. So your situation will depend on how your itemized deductions compare to your standard deduction.

Please note that Beem Filer does not support itemized deductions at this time. For coverage details and other important legal information about Filer, you can read more here.

What are the standard deduction amounts?

	2022	2023
Single/Married Filing Separately	$12,950	$13,850
Head of Household	$19,400	$20,800
Married Filing Jointly	$25,900	$27,700

Note: The standard deduction is a set deduction amount that reduces the amount of income that someone is taxed. It varies depending on your filing status, age, and whether or not you are blind.

How do I know if I can’t use the standard deduction?

You may not be able to take the standard deduction if one of the following applies to you:
- A married individual filing as married filing separately whose spouse itemizes deductions, even if the amount you itemize is less than the standard deduction.
- An individual who was a nonresident alien or dual status alien during the year
  - Please click here for exemptions to this.
- An individual who files a return for a period of less than 12 months due to a change in his or her annual accounting period
- An estate or trust, common trust fund, or partnership

It's really important for taxpayers to consider their deduction options each year since the tax code can change. People who itemized in the past might find that changes in the tax code make it a bad choice for them this year.

This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.

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