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What is the difference between itemized deductions and the Standard Deduction?

April 26, 2017deduction deductions difference itemized standard

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What is the difference between itemized deductions and the Standard Deduction?

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Many people will have quite a bit of IRS sanctioned deductions which they may list on their tax return, namely mortgage interest, real estate taxes on US property, state income taxes, etc., which, when added together, are larger than the standard deduction amount for their particular filing status. If that sum is indeed larger than the standard deduction allowed by the IRS, then that sum is allowed as a “subtraction” from your income before the tax percentage is multiplied against your net taxable income. If that sum is not large enough, then simply the standard deduction is allowed. It is either-or, not both standard and itemized as a choice for deduction type.