List of 2025 Itemized Deductions Guide – Itemized deductions remain one of the most powerful ways for U.S. taxpayers to lower taxable income on their 2025 federal tax return. If your qualified expenses exceed the standard deduction, itemizing on Schedule A (Form 1040) can significantly reduce your tax bill. This guide provides the official, up-to-date list of 2025 itemized deductions based on IRS rules, including key changes from the One Big Beautiful Bill Act (OBBBA).
Note: New 2025 deductions (no tax on tips, overtime pay, car loan interest, and enhanced senior deduction) are claimed on Schedule 1-A and are available whether you itemize or take the standard deduction. They do not appear on Schedule A.
What Are Itemized Deductions for Tax Year 2025?
Itemized deductions are specific expenses you paid during 2025 that the IRS allows you to subtract from your adjusted gross income (AGI) instead of taking the flat standard deduction. Common categories include medical expenses, state and local taxes, home mortgage interest, charitable gifts, and certain casualty losses.
You report them on Schedule A and attach it to Form 1040 or 1040-SR. You can only choose one: the larger of your total itemized deductions or the standard deduction.
2025 Standard Deduction Amounts – Should You Itemize?
Compare your potential itemized total to these IRS inflation-adjusted figures for tax year 2025:
- Single or Married Filing Separately: $15,750
- Married Filing Jointly or Qualifying Surviving Spouse: $31,500
- Head of Household: $23,625
Additional amounts apply if you (or your spouse) are 65+ or blind, but the new $6,000 senior deduction is claimed separately on Schedule 1-A.
Tip: Itemize if your total qualifying expenses > standard deduction. Homeowners in high-tax states, people with high medical costs, or generous donors often benefit most—especially with the higher SALT cap in 2025.
How to Claim Itemized Deductions on Your 2025 Return?
- Gather records (receipts, Form 1098 for mortgage interest, charity acknowledgments, etc.).
- Complete Schedule A (Form 1040) line by line.
- Enter the total on Form 1040, line 12.
- Choose the greater of itemized or standard deduction.
Keep records for at least 3 years. Use IRS Publication 17 and Schedule A instructions for details.
Medical and Dental Expenses Deduction 2025
You can deduct unreimbursed medical and dental expenses that exceed 7.5% of your AGI.
Eligible expenses include:
- Doctor, dentist, chiropractor, and therapist fees
- Prescription medicines and insulin
- Hospital care, lab tests, and diagnostic services
- Health insurance premiums (after subtracting any self-employed health insurance deduction)
- Medicare Parts B and D premiums
- Long-term care services and limited long-term care insurance premiums (age-based limits apply)
- Eyeglasses, hearing aids, crutches, wheelchairs, and guide dogs
- Transportation for medical care (actual costs or 21 cents per mile + parking/tolls)
- Lodging (up to $50/night) while receiving medical care away from home
What’s not deductible: Cosmetic surgery (unless medically necessary), non-prescription medicines (except insulin), and most over-the-counter items.
Pro tip: Track all expenses throughout the year—many families qualify once they surpass the 7.5% floor.
State and Local Taxes (SALT) Deduction for 2025 – Big Change!
The SALT cap has increased dramatically for 2025. You can now deduct up to $40,000 ($20,000 if married filing separately) for state and local income, sales, or property taxes.
- Line 5a: State/local income taxes or general sales taxes (choose one, not both; use optional IRS sales tax tables or actual receipts).
- Line 5b: Real estate taxes on your home or other non-business property.
- Line 5c: Personal property taxes (e.g., car registration based on value).
Important 2025 phaseout: The $40,000 limit is reduced if your modified AGI exceeds $500,000 ($250,000 if married filing separately), but never drops below $10,000 ($5,000 if MFS). Use the SALT Deduction Worksheet in the Schedule A instructions.
This change makes itemizing far more attractive for residents of high-tax states like California, New York, New Jersey, and Illinois.
Home Mortgage Interest and Investment Interest Deductions 2025
Home mortgage interest (Line 8) remains fully deductible within limits:
- Loans taken out after Dec. 15, 2017: Up to $750,000 of debt ($375,000 if married filing separately). The $750,000 limit is now permanent.
- Loans taken out on or before Dec. 15, 2017: Up to $1 million ($500,000 if MFS).
Deductible only on your main or second home. Include points paid (some deductible immediately, others over the loan life). Report amounts from Form 1098.
Investment interest (Line 9): Deduct interest on money borrowed to buy taxable investments (use Form 4952).
Not deductible: Personal interest or mortgage insurance premiums (PMI) for 2025.
Charitable Contributions Deduction 2025
You can deduct cash and non-cash gifts to qualified 501(c)(3) organizations.
- Cash/check (Line 11): Full amount (keep bank records or written acknowledgments for gifts of $250+).
- Property (Line 12): Fair market value (Form 8283 required for non-cash gifts over $500; qualified appraisal for items over $5,000).
Limits:
- Cash: Generally up to 60% of AGI
- Property: Up to 30% or 20% of AGI depending on type
Carryovers are allowed for 5 years. Volunteer expenses (14 cents/mile + out-of-pocket costs) also qualify.
Records required: Written acknowledgment from the charity for gifts of $250 or more.
Casualty and Theft Losses Deduction 2025
You can deduct personal casualty and theft losses only if they occurred in a federally declared disaster area.
Use Form 4684. Each loss must exceed $100, and the total must exceed 10% of your AGI. Report net qualified disaster losses on the appropriate line.
Business or income-producing casualty losses have different rules (not on Schedule A).
Other Itemized Deductions and Important Limitations in 2025
- Gambling losses: Deductible only up to the amount of your gambling winnings (reported as “other itemized deductions”).
- Miscellaneous itemized deductions subject to the former 2% AGI floor are permanently eliminated under OBBBA.
Overall limitations: No Pease limitation applies. High-income taxpayers should watch the SALT phaseout.
Tips to Maximize Your 2025 Itemized Deductions
- Bunch charitable gifts or medical expenses into 2025 if it helps you exceed the standard deduction.
- Use the IRS Sales Tax Calculator at IRS.gov for the best SALT amount.
- Donate appreciated stock instead of cash to avoid capital gains tax.
- Keep excellent records—missing documentation is the #1 reason deductions are disallowed.
- Run the numbers both ways (standard vs. itemized) using tax software or a professional.
Frequently Asked Questions About 2025 Itemized Deductions
Can I claim both standard and itemized deductions?
No—you must choose one.
Does the higher SALT cap apply to everyone?
Yes, but it phases down for very high earners.
Are points on a mortgage deductible?
Yes—consult Pub. 936 for timing.
What if my medical expenses are high?
The 7.5% floor still applies, but many families qualify once they add everything up.
For the latest updates, always refer to the official 2025 Instructions for Schedule A (Form 1040) and Publication 17 at IRS.gov.
Bottom line: With the increased SALT cap and permanent mortgage interest limits, more Americans than ever may benefit from itemizing in 2025. Run your numbers early and consult a tax professional if your situation is complex. Filing your 2025 taxes in 2026 just got potentially more rewarding!
This guide is for informational purposes only and is not tax advice. Tax laws can change—verify with IRS.gov or a qualified tax advisor.