Can you Itemize Deductions on your Tax Returns?

When filing your tax returns, you may wonder whether you can claim itemized deductions. Short answer, yes. If the total of your allowable deductions for the year exceeds the standard deduction for your filing status, you can itemize certain deductions. Otherwise, you must claim the standard deduction – see below.

Standard Deduction Amounts for 2024 and 2025

For the 2024 tax year, the standard deduction amounts are as follows:

• $14,600 for single filers or married individuals filing separately

• $29,200 for married couples filing jointly

• $21,900 for head-of-household filers

Additional standard deductions apply if you are 65 or older or blind:

• $1,550 per qualifying condition for married taxpayers

• $1,950 per qualifying condition for unmarried taxpayers

For 2025, the standard deductions will increase to:

• $15,000 for single filers or married individuals filing separately

• $30,000 for married couples filing jointly

• $22,500 for head-of-household filers

The additional standard deductions for 2025 are:

• $1,600 per qualifying condition for married taxpayers

• $2,000 per qualifying condition for unmarried taxpayers

Don’t Assume You Can’t Itemize

If your itemized deductions for 2024 are close to your standard deduction, carefully review your expenses to ensure you are not overlooking eligible deductions. Even if you didn’t itemize in 2023, you may be able to do so in 2024.

Key Itemized Deductions to Consider

1.    Mortgage Interest

• Check your 2024 Form 1098 for the amount of mortgage interest paid.

• Interest is deductible on up to $750,000 of home acquisition debt ($375,000 for married filing separately).

• Home equity loan interest is deductible if the loan was used to buy or improve a primary or secondary residence within these limits.

  
  

2.    State and Local Taxes

• You can deduct state and local income and property taxes, up to $10,000 ($5,000 if married filing separately).

• If you opt to deduct state and local sales tax instead of income tax, you can use either:

  • The actual amount of sales tax paid (if you have receipts), or

  • The IRS sales tax table, which provides an estimated deduction based on your state, income, and household size.

• Large purchases, such as vehicles, boats, and home renovations, can be added to the IRS table amount.

  
  

3.    Medical Expenses

• You can deduct qualified medical expenses exceeding 7.5% of your adjusted gross income (AGI).

• If you paid medical expenses for a dependent relative, such as an elderly parent, you can include them in your total.

Claim All Deductions You Are Eligible For

Gather your records and review all possible deductions before filing your return. If you have questions or need further guidance, consult your VAAS Tax Professional to ensure you maximize your deductions and minimize your tax liability.