Introduction — The decision that sets up your whole return

The first fork in every individual return: take the standard deduction or itemize on Schedule A. In 2025, the standard deduction rose again, so itemizing only wins when your eligible expenses clear that bar. Below is a crisp framework—using 2025 figures—to decide the smarter route, with Texas used for state context (Texas has no personal income tax, so the SALT deduction there usually means property tax + optional sales tax). For indexed items, remember: these amounts adjust annually for inflation. IRS+1

The 2025 standard deduction (compare this first)

  • Single or MFS: $15,000
  • Married Filing Jointly or QSS: $30,000
  • Head of Household: $22,500
    Additional amounts apply if you’re 65+ or blind (these add-ons are also indexed). IRS+2IRS+2

Quick rule: You generally choose whichever is larger—your itemized total or the standard deduction. If one spouse itemizes on MFS, the other can’t take the standard deduction. IRS+1

What counts toward itemizing (Schedule A) in 2025

Itemizing bundles several deduction categories. The big ones for most households:

1) Medical & dental expenses (7.5% of AGI floor)

Only the amount above 7.5% of AGI is deductible. Example: If AGI is $100,000 and you have $10,000 of eligible expenses, only $2,500 is deductible. IRS+1

2) State and local taxes (SALT) — capped

SALT (income or sales tax, plus real estate and personal property taxes) is capped at $10,000 total ($5,000 MFS). In Texas, there’s no state income tax—so filers typically combine property tax with general sales tax (use the IRS Sales Tax Deduction Calculator). IRS+2IRS+2

3) Home mortgage interest

Generally deductible on up to $750,000 of acquisition debt ($375,000 MFS); pre-12/16/2017 mortgages can be grandfathered at higher limits. Points and some mortgage insurance may also be deductible—see Pub 936. IRS+1

4) Charitable contributions

Cash gifts to most public charities are generally deductible up to 60% of AGI; property and certain gifts have 30%/20%/50% AGI limits. Carryovers of unused amounts typically last 5 years. Substantiation rules apply (e.g., $250+ acknowledgments). IRS+1

5) Casualty & theft losses

For individuals, personal losses are only deductible if tied to a federally declared disaster and then subject to special reductions/thresholds. See Pub 547 for details. IRS

6) Miscellaneous itemized deductions (most are suspended)

The TCJA suspends most 2%-of-AGI miscellaneous deductions through 2025 (e.g., unreimbursed employee expenses), with limited exceptions (certain reservists/performing artists via other provisions). IRS

Standard vs. Itemized: a simple decision flow

  1. Add up your likely itemized buckets (medical over 7.5% of AGI, SALT up to $10k, mortgage interest, charitable, casualty losses).
  2. Compare total to your 2025 standard deduction for your filing status. If the total exceeds your standard deduction, itemize; else, take the standard. IRS
  3. Texas tip: With no state income tax, Texas filers often “bunch” charitable gifts in a single year and ensure property taxes and major medical bills land in the same year to clear the threshold. Use the sales tax election if it beats state income tax (not relevant in TX) and document big purchases. IRS

2024 carryovers you might still use on your 2025 Schedule A

  • Charitable contributions: Unused 2024 amounts can carry forward up to five years, still subject to AGI limits in the carryover year. IRS
  • Casualty losses: Disaster-related carryovers follow Publication 547 rules. IRS

Reminder: Dollar limits and thresholds are indexed annually. Always confirm the current-year numbers before filing. IRS

Quick examples (federal focus; Texas context)

  • Texas homeowner with mortgage + property tax + gifts
    SALT (property + sales tax) up to $10k, mortgage interest on eligible debt (Pub 936), plus charitable gifts (Pub 526). If those combined beat your $30k (MFJ) standard deduction for 2025, itemize; if not, take the standard. IRS+1
  • Renter with limited SALT
    Often can’t beat the standard deduction unless large medical (over 7.5% of AGI) or significant charitable giving applies. IRS

Common pitfalls (and easy fixes)

  • Counting all medical bills—then discovering the 7.5% floor. Track AGI and only the excess qualifies. IRS
  • Assuming Texas means no SALT deduction. Property tax + sales tax can still help (capped at $10k). Use the IRS calculator. IRS+1
  • Forgetting the MFS rule. If one spouse itemizes, the other can’t take the standard deduction. IRS
  • Thinking unreimbursed job expenses are still deductible. Most 2% miscellaneous deductions are suspended through 2025. IRS

Want a 10-minute review to see whether itemizing beats your 2025 standard deduction? Book a 15-minute Finpilot360 consult—we’ll run the numbers and document the decision.

Keep an eye out for Part 6: The Qualified Business Income (QBI) Deduction Explained for Entrepreneurs.

Sources:

  • 2025 standard deduction amounts (Single/MFS $15k; MFJ/QSS $30k; HOH $22.5k). IRS+1
  • Who should itemize; additional standard deduction notes. IRS
  • Schedule A instructions; SALT $10,000 cap. IRS
  • Topic No. 503 (SALT overview & $10k cap). IRS
  • Medical/dental 7.5% AGI threshold. IRS
  • Mortgage interest rules (Pub 936). IRS
  • Charitable contribution limits & carryovers (Pub 526). IRS
  • Casualty/theft (federally declared disasters) (Pub 547). IRS
  • Miscellaneous itemized deductions suspended. IRS
  • Sales tax deduction calculator. IRS