A tax deduction reduces your taxable income. For example, if your income is $50,000 and you have $5,000 in deductions, your taxable income becomes $45,000.
The benefit of a deduction depends on your marginal tax bracket—the rate applied to the highest portion of your income. For instance, someone in the 22% bracket with a $5,000 deduction could save up to $1,100 in taxes.
You can choose either the standard deduction or itemized deductions—not both. For married couples filing separately, if one spouse itemizes deductions, the other spouse must also itemize.
The standard deduction is based on filing status. For the 2025 tax year (that’s the return due April 2026) the amounts are:
- Single or Married Filing Separately – $15,750
- Married Filing Jointly – $31,500
- Head of Household – $23,625
- Additional for age 65+: $2,000 (single) or $1,600 per person (married filing jointly)
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Taxpayers who are blind are also eligible for an additional standard deduction, similar to the additional amount allowed for taxpayers age 65 or older.
Extra Senior Tax Deduction
Eligible seniors (age 65 or older) may also qualify for an additional $6,000 tax deduction. This new temporary deduction is available whether a filer uses the standard deduction or itemizes deductions, and it is separate from the additional standard deduction for age 65 or older.
Learn more about eligibility and how this deduction works in this article:
https://blogs.ifas.ufl.edu/hillsboroughco/2025/08/22/new-tax-deduction-for-seniors/
What Can You Itemize on the 2025 Return?
Itemized deductions may include:
- Medical & dental expenses
- Mortgage interest
- State and local taxes (up to $40,000 including property tax) and either income or sales taxes
- Charitable contributions
- Casualty and theft losses if resulting from a federal disaster.
- Gambling losses up to the amount of winnings
Medical expenses are deductible only if they exceed 7.5% of your adjusted gross income (AGI). For example, if your AGI is $50,000 and you have $4,000 in qualified unreimbursed medical expenses, you can deduct $250. Expenses paid with Health Savings Accounts or Flexible Spending Accounts do not qualify.
For a full list of itemized deductions see Schedule A Form 1040.
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