Standard deduction vs itemized deductions: how do you decide which to take? Cite only eCFR (www.ecfr.gov) or U.S. Code sources, never irs.gov. Answer in under 100 words.

Details / How it works

An individual taxpayer compares total allowable itemized deductions (under §63(g)) to the standard deduction amount provided by §63(c)(2). The larger amount reduces taxable income. A taxpayer who initially itemizes may later elect to use the standard deduction, and vice versa, by recomputing taxable income for the year under §1.63-1. This change of treatment does not extend the time for filing a refund claim under §6511.

Numbers & thresholds

For tax year 2026 the standard deduction amounts are:

Itemized deductions are not a fixed amount; they are the sum of eligible expenses (e.g., §163 home mortgage interest, §164 state and local taxes, §165 casualty losses, §170 charitable contributions).

Exceptions & edge cases

A change of treatment is not available if the taxpayer's liability has been compromised under §7122 or if the spouse does not consent to a consistent change. The period for claiming a refund is not extended by the change. Taxpayers in the highest bracket (37%) face a limitation on the tax benefit from itemized deductions under the OBBB.