Which Is Better for You This Year: the Standard or Itemized Deduction? Choosing Wisely Can Increase Your Refund
- Alejandro
- 1 day ago
- 2 min read
When it’s time to file your taxes, one of the most important decisions you’ll make is whether to claim the standard deduction or itemize your deductions. Understanding the difference can help you maximize your refund and take full advantage of every available tax benefit.
The standard deduction is the simplest option. You don’t need to keep receipts or proof of expenses, since the IRS sets a fixed amount. For the 2025 tax year, the standard deduction amounts are:
$15,750 for single filers or married taxpayers filing separately.
$23,625 for head of household filers.
$31,500 for married couples filing jointly.
If the taxpayer is 65 years of age or older, the standard deduction can increase by $2,000.
However, if you are a homeowner and your mortgage interest, property taxes, mortgage insurance premiums, or points paid exceed the value of the standard deduction, you may benefit more from itemizing your deductions. Each situation is unique, which is why at Professional Taxes LLC we carefully analyze every option to help our clients obtain the best possible refund, always within the legal limits established by the IRS.
The same applies if your state and local taxes (including property, income, or sales taxes), combined with mortgage interest, add up to more than the standard deduction. In that case, itemizing your deductions may result in significant tax savings.
Additionally, if your out-of-pocket medical expenses exceed 7.5% of your adjusted gross income, you may deduct the amount that exceeds that percentage.
What Documents Do I Need If I Choose to Itemize My Deductions?
The vast majority of taxpayers benefit from choosing the standard deduction when filing their taxes. However, for some individuals, itemized deductions provide greater benefits. In this scenario, the most common documents you should keep include:
Receipts for the purchase of medications
Receipts for medical, dental, and vision treatments, among others
Invoices for essential medical equipment (glasses, prosthetics, walkers)
Donation certificates from churches, schools, and charitable institutions
Mortgage statements detailing mortgage interest payments
Proof of payment for homeowner’s insurance
Property tax payment receipts
Purchase invoice for a qualifying passenger vehicle
There are other deductions that may be allowed, but they are less common and depend on each taxpayer’s specific situation. These are evaluated during the tax preparation interview.
If, at the end of the tax year, it is not possible to provide some or all receipts, but you can demonstrate that the payments were made because they appear on your bank statements, those statements may also be accepted as valid proof.
At Professional Taxes LLC, we help you maximize your refund and patiently explain every step of the process.
You don’t have to make this decision alone. At Professional Taxes LLC, we analyze your financial situation, review every possible deduction, and guide you step by step so you can file your taxes correctly and obtain the greatest benefit possible.
Schedule your appointment today and discover why hundreds of taxpayers trust us every tax season.
Remember, at Professional Taxes LLC, maximizing your refund and giving you peace of mind are our top priorities.
We look forward to assisting you!
PROFESSIONAL TAXES LLC.
480-3430299
3162 E Roeser Rd. Phoenix, AZ. 85040
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