What Deductions Can I Claim If Itemize – If you’re wondering what deductions you can claim if you itemize, you’re likely comparing the potential tax savings against the standard deduction. For tax year 2025 (returns filed in 2026), itemizing on IRS Schedule A (Form 1040) can deliver bigger savings if your eligible expenses exceed the standard deduction amounts: $15,750 for single filers or married filing separately, $31,500 for married filing jointly, and $23,625 for heads of household.
Itemized deductions reduce your taxable income dollar-for-dollar and are reported on Schedule A. They include specific categories like medical expenses, taxes, interest, charity, and losses. New 2025 rules from the One Big Beautiful Bill (OBBBA) increased the state and local tax (SALT) cap and made certain mortgage limits permanent, but many miscellaneous deductions remain suspended.
Note: Separate new deductions (e.g., qualified tips, overtime pay, car loan interest, and an enhanced senior deduction) go on Schedule 1-A and are available whether you itemize or not.
When Should You Itemize Deductions in 2025?
Itemizing makes sense if your total qualifying expenses > standard deduction for your filing status. High homeowners in high-tax states, those with large medical bills, or generous charitable donors often benefit most. Use tax software or IRS tools to compare both options—most people take the standard deduction, but itemizing can save thousands in the right situations.
Always keep records like receipts, Form 1098 (mortgage interest), and acknowledgments for charity.
Medical and Dental Expenses Deduction
You can deduct unreimbursed medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI). This is one of the most accessible itemized deductions for families facing high healthcare costs.
Eligible expenses include:
- Doctor, dentist, and specialist visits
- Prescription medicines and insulin
- Hospital care, lab tests, and diagnostic services
- Health insurance premiums (not pre-tax)
- Medicare Parts B and D
- Long-term care (with age-based limits)
- Eyeglasses, hearing aids, crutches, and transportation (21 cents/mile + parking/tolls)
- Qualified weight-loss or smoking cessation programs
What’s not deductible: Cosmetic surgery (unless medically necessary), non-prescription drugs (except insulin), and most over-the-counter items.
Calculate on Schedule A, lines 1–4. See IRS Publication 502 for full details.
State and Local Taxes (SALT) Deduction
The biggest 2025 update: The SALT deduction cap rose to $40,000 ($20,000 if married filing separately). This applies to the combined total of state/local income taxes (or sales taxes), real estate taxes, and personal property taxes.
Key rules:
- Choose either income taxes or sales taxes (not both).
- Real estate and personal property taxes are fully included if they’re uniform assessments.
- High earners: The cap phases down if modified AGI exceeds $500,000 ($250,000 MFS), but never below $10,000 ($5,000 MFS). Use the IRS worksheet.
You report these on Schedule A, line 5. This change helps more homeowners and residents of high-tax states itemize profitably.
Home Mortgage Interest Deduction
Homeowners often itemize because of mortgage interest. You can deduct interest on loans used to buy, build, or substantially improve your main or second home.
2025 limits (made permanent under recent law):
- Loans after Dec. 15, 2017 → up to $750,000 debt ($375,000 if MFS)
- Loans before Dec. 15, 2017 → up to $1 million debt ($500,000 if MFS)
Include points paid (in some cases fully deductible in the year paid). Report on Schedule A, line 8 using Form 1098 data. Home equity loan interest qualifies only if proceeds were used for home improvements.
Investment interest (on loans to buy taxable investments) is deductible on line 9 via Form 4952, but limited to your net investment income.
Charitable Contributions Deduction
Generous donors can deduct cash and property gifts to qualified 501(c)(3) organizations, churches, and certain governments.
Limits for 2025:
- Cash to public charities → up to 60% of AGI
- Appreciated property → up to 30% of AGI
- Carryovers allowed for 5 years
Requirements: Get written acknowledgments for gifts of $250+, file Form 8283 for non-cash over $500, and keep records of fair market value. Report cash on line 11, non-cash on line 12, and prior-year carryovers on line 13.
Not deductible: Raffle tickets, political donations, or the value of your time/services.
Casualty and Theft Losses Deduction
Personal casualty and theft losses are limited to those from federally declared disasters. Use Form 4684 to calculate.
Each loss must exceed $100, and the total must exceed 10% of AGI. Report on Schedule A, line 15 (or line 16 for net qualified disaster losses).
Income-producing property losses have broader rules.
Other Itemized Deductions
This catch-all category (line 16) includes:
- Gambling losses (only up to the amount of your gambling winnings reported as income)
- Federal estate tax on income in respect of a decedent
- Unrecovered investment in pensions
- Impairment-related work expenses for disabled persons
Most 2%-of-AGI miscellaneous deductions remain permanently suspended.
How to Claim Itemized Deductions on Your 2025 Tax Return?
- Complete Schedule A (Form 1040) and attach it to your Form 1040 or 1040-SR.
- Enter the total on Form 1040, line 12 (itemized or standard—whichever is larger).
- E-file for faster refunds and error checking.
- Keep records for at least 3 years (7 years for bad debt or casualty claims).
Use IRS Free File, tax software, or a professional preparer. Always double-check eligibility with the latest IRS instructions for Schedule A.
Tips to Maximize Your Itemized Deductions in 2025
- Bunch expenses: Shift charitable gifts or medical procedures into one year to exceed the standard deduction.
- Track SALT carefully: Pay 2025 estimated taxes before year-end if it helps.
- Donate smartly: Use donor-advised funds or QCDs from IRAs (if age 70½+).
- Document everything: Receipts, mileage logs, and acknowledgments are essential for audits.
- Compare both options: Run the numbers in tax software before deciding.
Final Thoughts on Itemizing Deductions
Knowing what deductions you can claim if you itemize in 2025 can lower your tax bill significantly—especially with the higher SALT cap and permanent mortgage rules. Review your situation against the standard deduction and consult a tax professional or IRS.gov for personalized advice. Tax laws can change, so always verify with official IRS resources like Publication 17, Schedule A instructions, and Publication 502/526.
For the most accurate filing, visit IRS.gov/ScheduleA or use the Interactive Tax Assistant. Filing accurately helps you keep more of your hard-earned money while staying compliant.