The difference between the standard deduction and itemized deduction comes down to simple math. The standard deduction lowers your income by one fixed amount. On the other hand, itemized deductions are made up of a list of eligible expenses (ex. mortgage interest, charitable contributions etc). You can claim whichever lowers your tax bill the most.
The standard deduction amounts are:
- For single or married filing separately — $12,550
- For married filing jointly or qualifying widow(er) — $25,100
- For head of household — $18,800
