What is the difference between standard and itemized deductions?

Standard deductions are deductions that are available to all taxpayers who file their taxes. These deductions are established by the federal government and, in Washington State, are based on your filing status, age, and whether you or your dependents are blind. Itemized deductions are deductions that are available to some taxpayers who file their taxes. These deductions are itemized on Schedule A of Form 1040 and can include eligible expenses for medical and dental costs, state and local taxes, mortgage interest, charitable donations and more. The difference between the two is that, with standard deductions, you are allowed to automatically deduct a fixed amount from your taxable income, whereas with itemized deductions, you must itemize the deductions you claim in order to deduct them from your taxable income. The advantage of itemized deductions is that they can often provide a greater tax savings than the standard deductions. However, if you choose to itemize, you must include all of your eligible itemized deductions, and you must be able to accurately document them with proof. You also must determine if itemizing is beneficial or if taking the standard deduction would provide you with a bigger tax savings.

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What is the difference between standard and itemized deductions?

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