Standard Deduction vs. Itemizing: Which Actually Saves You More Money in 2023?

When tax season rolls around, you face a critical fork in the road: claim the standard deduction or spend time itemizing. The decision isn’t one-size-fits-all—it depends entirely on your financial situation. While most filers reflexively grab the standard deduction, savvy taxpayers know that itemizing often delivers bigger tax cuts. This guide walks you through both options and provides the exact numbers you need for the 2023 and 2022 tax years.

The Math Behind Your Choice

Here’s the reality: your federal income taxes hinge on your “adjusted gross income” (AGI). From this figure, you subtract either your standard deduction or your itemized deductions—whichever option exists. This reduced amount becomes your taxable income, and it’s applied against the tax brackets to calculate what you owe.

The larger your deduction, the lower your taxable income. The lower your taxable income, the smaller your tax bill. If your deduction is substantial enough to push you into a lower tax bracket, the savings multiply.

The catch? You can’t claim both. Pick one and commit to it.

2023 Standard Deduction Amounts by Filing Status

For the 2023 tax year (due April 15, 2024), here’s what the IRS allows:

These amounts jumped significantly from 2022—the biggest inflation-driven increase in years. That’s because the IRS adjusts the standard deduction annually to keep pace with rising costs.

When the Standard Deduction Gets Bigger

Two situations boost your standard deduction above the baseline:

Age or Blindness: If you’re 65 or older, or legally blind as of December 31, 2023, you qualify for an additional deduction:

• $1,850 (single or head of household)
• $1,500 (married filing jointly or separately)

If both conditions apply to you—you’re 65+ AND blind—the additional deduction doubles. Married couples where both spouses qualify can stack these benefits too.

For example, a single filer who is 65 and blind gets $13,850 + $1,850 + $1,850 = $17,550.

Dependents: If someone else claims you as a dependent, your standard deduction is capped at the greater of $1,250 or your earned income plus $400 (up to the applicable standard deduction limit).

Qualified Disaster Losses: Taxpayers with net qualified disaster losses from specific declared disasters can claim an elevated standard deduction. You’ll need Form 4684 to calculate this.

2022 Standard Deduction Comparison

Notice the year-over-year increases? Single filers gained $900, while joint filers added $1,800. Additional deductions for age and blindness in 2022 were $1,750 (single/head of household) and $1,400 (married/surviving spouse).

Itemizing vs. Standard Deduction: When to Itemize

You might want to itemize if your total write-offs exceed your standard deduction. Common itemized deductions include:

• Home mortgage interest and property taxes (capped at $10,000 total across all state and local taxes)
• Medical expenses not covered by insurance
• Charitable contributions to qualified organizations
• Casualty or theft losses (uninsured)

Here’s the reality: many middle-class filers now take the standard deduction because the 2017 Tax Cuts and Jobs Act nearly doubled it. However, homeowners with high property taxes, or those with significant charitable giving, might still come out ahead by itemizing.

Property Taxes and the Deduction Landscape

If you don’t itemize and claim the standard deduction instead, you forfeit the ability to deduct property taxes. However, if you do itemize, you can deduct state and local property taxes—though the total of all state, local, and property taxes is capped at $10,000 annually. This SALT cap, introduced in 2017, was a major change. High-tax states hit this ceiling first, making the decision between itemizing and standard deduction more complex for property owners in places like California, New York, and New Jersey.

Who’s Stuck Using Itemized Deductions

Three groups can’t claim the standard deduction:

• Married couples filing separately if one spouse itemizes
• Nonresident or dual-status aliens (with limited exceptions)
• Those filing for a short tax year due to accounting period changes

If you fall into these categories, you must itemize—even if it’s less favorable.

Above-the-Line Deductions: Your Hidden Tax Breaks

Even if you take the standard deduction, don’t assume you’ve captured all available write-offs. The tax code allows “above-the-line” deductions that reduce your AGI before you apply the standard deduction:

• IRA contributions (traditional, not Roth)
• Health savings account (HSA) contributions
• Student loan interest
• Self-employed health insurance premiums
• Teacher classroom expenses
• SEP and SIMPLE plan contributions
• Military moving expenses
• Alimony paid (agreements pre-2019)
• Jury duty pay remitted to employers

These stack on top of your standard deduction, making them particularly valuable.

What’s Coming: The Future of Standard Deductions

The higher standard deduction amounts you see today expire January 1, 2026—unless Congress acts. The 2017 Tax Cuts and Jobs Act doubled the standard deduction as a temporary measure. After 2025, it reverts to pre-2018 levels (adjusted for inflation), cutting roughly in half.

Political gridlock makes extension uncertain. Some House Republicans have proposed a $2,000 annual increase ($4,000 for joint filers) for 2024-2025, phasing out for higher earners. Democrats favor expanding the child tax credit instead. Expect this to be a major election-year debate.

Standard Deduction History: 2016-2021

The jump from 2017 to 2018 is stark—the 2017 Tax Cuts and Jobs Act nearly doubled amounts overnight.

The Bottom Line

Your standard deduction depends on filing status, age, dependency status, and vision—not on effort or income. Run the numbers: calculate your potential itemized deductions and compare against your standard deduction. For most filers, the standard deduction wins. But for homeowners paying substantial property taxes, those making large charitable gifts, or anyone in high-tax states, itemizing might deliver real savings. Consider consulting a tax professional if your situation is complex.