Standard Deduction vs. Itemizing: Which One Should You Choose?

Every tax season, one question comes up again and again: should I just take the standard deduction, or is it worth itemizing? The honest answer depends on your situation — but a few key numbers can help you decide quickly.

The Standard Deduction: Simple and Often the Better Deal

The standard deduction is a flat amount the IRS lets you subtract from your income — no receipts, no paperwork. For the 2024 tax year (filed in 2025), the amounts are:

• Single / Married Filing Separately: $14,600
• Married Filing Jointly: $29,200
• Head of Household: $21,900

If you're 65 or older or legally blind, you get an additional $1,550–$1,950 on top. About 90% of U.S. taxpayers take the standard deduction — and for most renters, students on F-1 visas, and short-term assignees, it's usually the right call.

When Itemizing Actually Pays Off

Itemizing (using Schedule A) makes sense when your qualifying expenses add up to more than your standard deduction. The big ones to check:

• Mortgage interest: If you own a home in a high-cost area like the LA Koreatown corridor, Flushing NY, or Northern Virginia, your annual mortgage interest alone could easily hit $12,000–$20,000. You'll get a Form 1098 from your lender.
• State and local taxes (SALT): Property tax plus state income tax, capped at $10,000 total.
• Medical expenses: Only the portion exceeding 7.5% of your AGI counts — worth checking if you had major surgery or out-of-pocket costs.
• Charitable contributions: Cash or non-cash donations to churches and nonprofits. Keep your receipts and any Form 1098-C for vehicle donations.

Homeowners in high-tax states like California, New York, or New Jersey often find that itemizing saves them more. But if you're renting, on a student visa, or on a short-term work assignment, the standard deduction is almost always simpler and just as good — or better.

Quick Ways to Compare Both Options

• Tax software like TurboTax, FreeTaxUSA, or H&R Block will automatically calculate both and tell you which saves more money.
• IRS Free File (irs.gov/freefile) is available at no cost if your AGI is $79,000 or under.
• Korean-speaking CPAs are relatively easy to find in areas like Koreatown (LA), Flushing (NY), and Annandale (VA) — a quick search for "한인 CPA" in your area is a good starting point.

Everyone's tax situation is different, and things get more complicated if you have foreign income, an expat compensation package, or a non-resident tax status. This article is for general informational purposes only and is not a substitute for professional tax or legal advice. We recommend consulting a licensed CPA or tax professional for guidance specific to your situation.