Itemized Deductions: Complete List & When to Itemize vs. Standard

How Itemized Deductions Work: The Basics

When you file Form 1040, you must choose between two methods of reducing your taxable income below your adjusted gross income (AGI): the standard deduction or itemized deductions. These are mutually exclusive — you cannot take both. Itemized deductions are listed on Schedule A (Form 1040) and submitted with your return.

The decision point is simple: if the sum of all your allowable Schedule A deductions exceeds the standard deduction for your filing status, itemizing saves you more. For 2026, that threshold is $16,100 for single filers and $32,200 for married filing jointly (per IRS Rev. Proc. 2025-32). If your total comes in below that, the standard deduction wins automatically.

There is one important nuance: certain taxpayers cannot take the standard deduction at all. Married filing separately filers must either both itemize or both take the standard deduction — if your spouse itemizes, you must too, even if your itemized total is small. Nonresident aliens and those with short tax years due to accounting period changes are also ineligible for the standard deduction.

To understand how itemized deductions interact with your overall tax picture, use the Income Tax Calculator to model different deduction scenarios against your actual income.

Complete List of Itemized Deductions (Schedule A, 2025–2026)

Schedule A organizes itemized deductions into six sections. Here is what each includes, the current rules, and the practical limits you will encounter.

1. Medical and Dental Expenses (Lines 1–4)

You can deduct unreimbursed medical expenses that exceed 7.5% of your AGI. This threshold is defined in IRC §213 and confirmed in IRS Publication 502. The 7.5% floor has been permanent since 2021, ending the prior oscillation between 7.5% and 10%.

The AGI floor means the deduction only activates for large medical events relative to your income. For a taxpayer with $80,000 AGI, the first $6,000 of medical expenses (7.5% × $80,000) provides no deduction. Only expenses beyond that threshold count. A taxpayer with $30,000 in surgery, hospitalization, and rehabilitation costs would deduct $30,000 − $6,000 = $24,000.

What qualifies (per IRS Publication 502): health insurance premiums paid out-of-pocket (not through a pre-tax employer plan), dental and vision care, prescription medications, doctor and hospital fees, mental health treatment, chiropractic care, acupuncture, ambulance services, hearing aids, wheelchair and crutch costs, and long-term care insurance premiums (age-limited: up to $5,640 for taxpayers 71+ in 2025). Travel to medical appointments qualifies at $0.21/mile (2025 rate) or actual costs.

What does not qualify: cosmetic procedures with no medical necessity, health club or gym memberships (even if prescribed), teeth whitening, diet foods, personal use items like vitamins and supplements, and any expense reimbursed by insurance or an HSA.

2. State and Local Taxes — SALT (Lines 5–6)

The SALT deduction allows you to deduct certain taxes paid to state and local governments, subject to a cap. The One Big Beautiful Bill Act (P.L. 119-21) raised the SALT cap from $10,000 to $40,400 for most 2026 filers ($20,200 for married filing separately). The IRS correction for 2026 Form 1040-ES says the overall limit is reduced above $505,000 MAGI ($252,500 MFS), but not below $10,000 ($5,000 MFS). This is the most impactful change for itemizers in high-tax states like California, New York, and New Jersey.

The SALT cap phases down above $505,000 MAGI (but not below $10,000) and expires after 2029 absent new legislation. Taxpayers in no-income-tax states (Florida, Texas, Nevada, etc.) often elect to deduct sales taxes instead. For an input-specific comparison, use the SALT deduction calculator, and for state context see our guide to states with no income tax.

3. Home Mortgage Interest (Lines 8–9)

Mortgage interest is often the single largest itemized deduction for homeowners. You can deduct interest on up to $750,000 of acquisition debt (mortgages used to buy, build, or substantially improve your home) for loans taken out after December 15, 2017. Grandfathered loans taken before that date can still use the old $1,000,000 limit. IRS Publication 936 provides full guidance.

Mortgage points paid at closing are deductible in the year paid if the loan is for your primary residence and meets certain conditions (the points must represent normal practice in your area and cannot exceed the rate typically charged). Points on refinances must be amortized over the life of the loan rather than deducted upfront.

For a comprehensive breakdown of how the mortgage interest deduction works — including the home equity rules and second-home provisions — see our dedicated mortgage interest deduction guide.

4. Gifts to Charity (Lines 11–14)

Charitable contributions to qualified 501(c)(3) organizations are deductible on Schedule A. The deduction limit is generally 60% of AGI for cash gifts to public charities, and 30% of AGI for appreciated property or gifts to private foundations. Excess contributions carry forward for up to five years.

Starting in 2026 under the One Big Beautiful Bill Act, a new 0.5%-of-AGI floor applies: only charitable gifts exceeding 0.5% of your AGI are deductible. For a taxpayer with $100,000 AGI, the first $500 of charitable giving generates no deduction. This change primarily affects taxpayers with modest giving relative to income.

Documentation requirements are strict. Cash gifts of any amount require a bank record, cancelled check, or written receipt. Single gifts of $250 or more require a contemporaneous written acknowledgment from the charity. Non-cash donations over $500 require Form 8283. Donations of property worth more than $5,000 generally require a qualified appraisal. The IRS has disallowed billions in charitable deductions due to documentation failures — this is a heavily audited area. For strategies to maximize charitable giving tax efficiency, see our charitable donation deduction guide.

5. Casualty and Theft Losses (Lines 15–16)

Since the Tax Cuts and Jobs Act, personal casualty and theft losses are only deductible if they result from a federally declared disaster. The deduction applies to the net loss exceeding 10% of AGI plus a $100-per-event floor. Losses covered by insurance do not qualify.

For most taxpayers in most years, this deduction is irrelevant. It becomes significant after major hurricanes, wildfires, floods, or other presidentially declared disasters. If you experienced a federally declared disaster loss, FEMA's disaster declaration lookup and IRS Publication 547 are your starting points.

6. Other Itemized Deductions (Lines 16–17)

This section is far narrower than it used to be. The 2% AGI floor miscellaneous deductions — including unreimbursed employee expenses, investment advisory fees, and tax preparation costs — were permanently eliminated by the One Big Beautiful Bill Act in 2025. They will not return.

What survives in the other deductions category includes: gambling losses (deductible only up to gambling winnings, per IRC §165(d)), impairment-related work expenses for disabled taxpayers, amortization of premium on taxable bonds, and repayments of income previously taxed under claim of right.

The Math: When Does Itemizing Actually Win?

Let's run a concrete comparison for three common taxpayer profiles to illustrate when itemizing beats the standard deduction in 2026.

*Tax savings use 2026 ordinary marginal brackets before credits, AMT, state tax, withholding, and phaseout effects. Illustrative only — individual results vary based on the full tax situation.

Deduction Bunching: The Strategy That Lets You Have Both

If your itemized deductions are close to — but not quite above — your standard deduction threshold, consider deduction bunching. The strategy: concentrate two years' worth of flexible deductible expenses into a single tax year, then take the standard deduction in the alternate year.

The most controllable expenses for bunching are charitable contributions and certain medical expenses. A taxpayer who normally gives $8,000/year to charity can instead give $16,000 every other year — same total outflow, but one year they itemize and the other year they take the standard deduction, producing a larger total deduction over two years than consistently taking the standard deduction.

Donor-Advised Funds (DAFs) make bunching even more efficient. You can make a large contribution to a DAF in a single year (getting the full deduction that year), then distribute grants from the DAF to your chosen charities over multiple years. This separates the tax event from the giving schedule.

For year-end planning that incorporates bunching strategies, see the year-end tax planning checklist.

Who Is Most Likely to Benefit from Itemizing in 2026?

The profile of a taxpayer who benefits from itemizing has sharpened considerably since the TCJA. According to Tax Foundation analysis of IRS Statistics of Income data, itemizers are disproportionately concentrated among higher-income households with specific financial profiles:

• →High-mortgage homeowners in expensive metros: A $750,000 mortgage at 6.5% generates roughly $47,000 in first-year interest — well above the standard deduction on its own. As the loan matures and the principal-to-interest ratio shifts, this advantage erodes.
• →Residents of high-tax states: With the SALT cap at $40,400 for most 2026 filers, taxpayers in California, New York, New Jersey, Connecticut, and Massachusetts can again deduct meaningful state income and property taxes. A California filer paying $25,000 in state income tax and $12,000 in property tax is now at $37,000 SALT alone.
• →Significant charitable donors: Major donors — particularly those giving $20,000–$50,000+ annually — can push total Schedule A deductions over the standard threshold when combined with SALT and mortgage interest.
• →Taxpayers with major medical events: Cancer treatment, major surgery, or long-term care for a family member can generate $50,000+ in out-of-pocket costs. Even with the 7.5% AGI floor, the net deduction can be significant.
• →Married filing separately filers whose spouse itemizes: As noted above, if your spouse itemizes, you must also itemize — even if your deductions are small.

Above-the-Line vs. Below-the-Line: Why Both Matter

Many taxpayers focus exclusively on the itemize-vs-standard decision and overlook above-the-line deductions (adjustments to income, now called Part II of Schedule 1). These deductions reduce your AGI regardless of whether you itemize or take the standard deduction — and a lower AGI independently benefits you by reducing phase-outs, increasing credits, and lowering the 7.5% AGI floor on medical deductions.

Key above-the-line deductions include: student loan interest (up to $2,500), health insurance premiums for self-employed individuals (100% of premiums), HSA contributions (up to $4,400 single / $8,750 family in 2026), half of self-employment tax, SEP-IRA and SIMPLE IRA contributions, and educator expenses ($300). These are always worth capturing regardless of whether you itemize. See the self-employment tax guide for above-the-line deductions available to freelancers.

What Changed for Itemized Deductions Under the OBBBA

The One Big Beautiful Bill Act (signed July 4, 2025) made several permanent changes to itemized deductions that affect 2026 and beyond:

• 1.SALT cap raised to $40,400 for most 2026 filers (from $10,000), with a phase-down above $505,000 MAGI but not below $10,000. Reverts to $10,000 after 2029.
• 2.0.5%-of-AGI floor on charitable deductions — new in 2026, reduces the effective deduction for modest givers.
• 3.PMI is now deductible — private mortgage insurance premiums can be deducted as mortgage interest, revived permanently after lapsing under TCJA.
• 4.Miscellaneous 2% floor deductions permanently eliminated — investment advisory fees, unreimbursed employee expenses, tax preparation costs are gone for good.
• 5.Overall Pease limitation is permanently gone — the prior law that phased out itemized deductions for high earners will not return. However, the OBBBA imposes a separate limit on the tax benefit from itemized deductions for the 37% bracket.

Documentation You Need Before You File

Claiming itemized deductions without adequate documentation is the surest path to a proposed IRS assessment. Based on IRS audit statistics and the types of adjustments most commonly proposed in correspondence audits, the risk areas are: charitable donations without receipts, medical mileage without a log, business use of home without records, and casualty losses without appraisals or FEMA documentation.

Keep these records for at least three years after the later of the filing date or due date for the year in question (per the standard statute of limitations under IRC §6501). If you omit more than 25% of gross income, the statute extends to six years. For fraudulent returns, there is no limitation period.

Understand your audit risk before you file. The IRS audit guide covers the specific triggers and documentation standards that matter most for itemizers.

How to Claim Itemized Deductions: Step by Step

1. 1Gather all documentation by category: Form 1098 (mortgage interest), property tax statements, state income tax records (Form W-2 Box 17 or estimated tax payments), medical bills and insurance EOBs, and charitable receipts.
2. 2Calculate your AGI first — the medical deduction and the new charitable floor both depend on AGI, so you need this number before you can calculate Schedule A totals.
3. 3Complete Schedule A in draft — enter each category and calculate the total. Compare the Schedule A total to your standard deduction.
4. 4Check AMT exposure — SALT deductions are not allowed under the Alternative Minimum Tax (AMT). If you are near or in AMT territory, the itemized benefit from SALT may be partially or fully offset.
5. 5File Schedule A with Form 1040 if itemizing is better. If the standard deduction wins, simply check that box on Form 1040 — no Schedule A required.

Frequently Asked Questions