The standard deduction is a fixed amount the IRS lets you subtract from income based on filing status. Itemized deductions total up your actual qualifying expenses. You choose whichever gives you the bigger reduction.
Both the standard deduction and itemized deductions reduce your taxable income — the figure the IRS uses to calculate what you owe. You can use one or the other in a given tax year, not both.
The standard deduction is a flat dollar amount set by the IRS each year. It varies by filing status and may be higher if you are 65+ or legally blind. No receipts or calculations required — you simply claim the fixed amount.
Itemizing means adding up specific qualifying expenses on IRS Schedule A. Common itemized deductions include:
Most taxpayers take whichever option produces the larger deduction. If your total itemized expenses exceed the standard deduction for your filing status, itemizing saves more. Otherwise the standard deduction is simpler and usually wins. A tax professional can run the comparison.