Take the larger one
Standard or itemised.
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Marginal tax brackets, demystifiedTax credits versus tax deductionsStandard deduction or itemising?Sales tax, explained (and why your receipt total surprises you)Which receipts actually matter at tax timeShort-term and long-term capital gainsTax-loss harvesting, carefullyW-2 employee versus 1099 contractorCharitable giving and taxesWhen to hire a tax professional
Standard deduction or itemising?
You take whichever is larger. Most people take the standard deduction — and from 2026, non-itemisers can also deduct some cash gifts to charity.
In this lesson you will
- Compare standard and itemised deductions
- Know the main itemised categories
- Use the 2026 non-itemiser charitable deduction
Deductions lower taxable income. Each year you choose between the standard deduction — a fixed amount set by the IRS for your filing status — and itemising, which adds up specific eligible expenses.
Common itemised deductions
- State and local taxes, up to a cap.
- Mortgage interest on a qualifying home.
- Charitable contributions.
- Medical expenses above a percentage of income.
The decision
Itemise only if your eligible total is larger than your standard deduction. Tax software compares both. Because the standard deduction is large, most filers take it.
New from 2026
Beginning with tax year 2026, people who do not itemise can deduct up to $1,000 ($2,000 for married couples filing jointly) of cash gifts to eligible charities. Non-cash gifts and gifts to donor-advised funds do not qualify (IRS).
Bunching
Some households “bunch” deductible expenses, such as donations, into alternate years — itemising in one and taking the standard deduction in the next. Not tax advice — rules and amounts change; check IRS.gov or a tax professional.
By the GetGuac team · Editorial policy
Three ideas to keep
Most take the standard deduction
It is large.
Bunching can help
Concentrate deductions in one year.
Do it in 4 steps
Look up your standard deduction
Current year, filing status.
Total eligible itemised costs
From receipts.
Compare
Pick the larger.
Keep charity receipts
Either way, from 2026.
Itemise or not?
Made-up standard deduction of $15,000 for illustration.
| Itemised item | Amount |
|---|---|
| State and local taxes (within cap) | $7,000 |
| Mortgage interest | $5,500 |
| Cash donations | $1,200 |
| Itemised total | $13,700 |
| Standard deduction (made-up) | $15,000 |
$13,700 < $15,000, so take the standard deduction — and from 2026 the cash donations may still count under the non-itemiser rule, up to its limit.
Where this usually goes wrong
- Itemising when the standard deduction is larger
- Discarding donation receipts
- Assuming donor-advised fund gifts count for the non-itemiser deduction
Add up last year’s mortgage interest, state and local taxes and donations, and compare with your standard deduction.
Tools and guides for this lesson
Quick quiz
1. You should usually…
2. From 2026, non-itemisers can deduct cash charity gifts up to…
3. “Bunching” means…
0 of 3 answered
Puzzle
Your itemised costs total $16,400 and your standard deduction is $15,000. Which do you take, and by how much does it beat the other?
Show the answer
Itemise; $1,400 more
$16,400 − $15,000 = $1,400.