What Is the Standard Deduction?
Simple definition: A fixed dollar amount the IRS lets you subtract from your income before calculating taxes. You don't have to prove what you spent it on — just take the deduction automatically.
Alternative: Itemize. List out all your actual deductible expenses (mortgage interest, state taxes, charitable giving) and claim the total.
Rule: Claim whichever is bigger. Don't claim both.
2026 Standard Deduction Amounts
| Filing Status | Standard Deduction |
|---|---|
| Single | $16,100 |
| Married Filing Jointly | $32,200 |
| Head of Household | $24,150 |
| Married Filing Separately | $16,100 |
Why 91% Take the Standard Deduction
Most people's actual deductions are less than the standard amount.
Example: You're single earning $60,000. You own a home with $200,000 in mortgage (at 4% rate = ~$8,000/year interest). You give $2,000 to charity. You pay $3,000 in state and local taxes.
Total itemized deductions: $8,000 + $2,000 + $3,000 = $13,000
Standard deduction (single): $16,100
Take the standard deduction. You lose $3,100 in potential deductions, but you also don't have to track and document every expense.
When Itemizing Beats the Standard Deduction
High State and Local Taxes (SALT)
Living in California, New York, or New Jersey? State income taxes alone can run $5,000–$15,000+ per year.
Rule: If your state/local taxes + mortgage interest + charitable gifts exceed the standard deduction, itemize.
Large Mortgage Interest
Mortgage interest is deductible (up to $750,000 of mortgage debt). If you have a $500,000 mortgage at 4%, that's $20,000/year in deductible interest.
Combined with state taxes and charity, you could easily exceed the standard deduction.
Large Charitable Gifts
Give $15,000+ to charity per year? That's deductible. Combined with state taxes and mortgage interest, you might exceed the threshold.
The Quick Test
Step 1: Add up:
- State and local income taxes paid
- Property taxes paid
- Mortgage interest paid
- Charitable donations (cash only; non-cash donations have strict rules)
Step 2: Compare to the standard deduction for your filing status.
Step 3: If your total exceeds the standard deduction, itemize. Otherwise, take the standard.
ITIN vs. SSN Filers
Short answer: The standard deduction rules are the same for ITIN and SSN filers.
ITIN holders can take the standard deduction, itemize, claim dependent exemptions (in some cases), and use the same tax credits as SSN holders.
The only difference is that ITIN holders cannot claim the Earned Income Tax Credit (EITC) in most cases — a federal credits for lower-income workers. But the standard deduction and itemization rules are identical. ITIN holders may also claim the Child Tax Credit if their qualifying child has a valid SSN.
Real Example: When Itemizing Wins
Scenario: Married, filing jointly. Both work. Combined W-2 income: $150,000.
Expenses:
- State income tax: $8,000
- Property tax: $6,000
- Mortgage interest: $15,000
- Charitable gifts: $4,000
Itemized total: $33,000
Standard deduction (MFJ): $32,200
Winner: Itemize (gain $800)
This assumes you can document everything. If you can't prove the charitable gifts or property taxes, adjust downward and compare again.
The Bottom Line
Take the standard deduction unless you're sure your itemized deductions exceed it. Itemizing requires documentation, tracking, and a higher risk of audit for large deductions.
For most ITIN holders earning under $100,000, the standard deduction is simpler and saves more. Calculate both ways at tax time — your tax software will do it automatically — and claim the bigger one.
Frequently Asked Questions
What is the 2026 standard deduction?
For 2026 the standard deduction is $16,100 for single filers (and married filing separately), $32,200 for married filing jointly, and $24,150 for head of household. Most people subtract this flat amount instead of itemizing.
Should I take the standard deduction or itemize?
Take whichever is larger. About nine in ten filers take the standard deduction because their itemizable costs — mortgage interest, state and local taxes (up to the cap), charitable gifts, large medical bills — add up to less than the standard amount.
Can ITIN holders take the standard deduction?
Yes, if you are a resident alien for tax purposes — you take the same standard deduction as an SSN holder. Nonresident aliens generally cannot take it and must itemize. The substantial-presence test determines which applies to you.
When does itemizing win?
Usually when you own a home with a sizable mortgage, pay high state and local taxes, had large out-of-pocket medical costs, or made significant charitable donations — and those total more than your standard deduction.