What Itemized Deductions Can I Claim? – If you’re filing your 2025 federal tax return in 2026, understanding itemized deductions can help you lower your taxable income significantly. Itemized deductions are specific expenses you list on Schedule A (Form 1040) instead of taking the standard deduction. Most taxpayers take the standard deduction because it’s simpler, but if your qualifying expenses are high—especially in high-tax states or with large medical bills, mortgage interest, or charitable giving—itemizing could save you money.
This guide explains exactly what itemized deductions you can claim for tax year 2025, with current IRS rules, limits, and tips tailored for U.S. taxpayers. Always keep receipts and consult a tax professional or IRS.gov for your specific situation, as rules can be complex.
What Are Itemized Deductions?
Itemized deductions reduce your adjusted gross income (AGI) to arrive at taxable income. You report them on Schedule A and attach it to your Form 1040 or 1040-SR. You can only choose either the standard deduction or itemized deductions—you can’t do both.
Common categories include:
- Medical and dental expenses
- State and local taxes (SALT)
- Home mortgage interest
- Charitable contributions
- Casualty and theft losses (in limited cases)
- Certain other expenses
Important 2025 update: The One Big Beautiful Bill Act increased the SALT cap and introduced new above-the-line deductions (e.g., for tips, overtime, senior enhancement, and car loan interest) claimed on Schedule 1-A. These are available whether you itemize or not—but they are not part of Schedule A itemized deductions.
Should You Itemize or Take the Standard Deduction?
Compare your total potential itemized deductions to the 2025 standard deduction amounts:
- 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 age 65+ or blind.
Tip: Use tax software or the IRS Interactive Tax Assistant to run both scenarios. Itemize if your total on Schedule A exceeds the standard deduction. High medical costs, homeownership, or living in high-tax states often make itemizing worthwhile—especially with the new higher SALT cap.
Medical and Dental Expenses You Can Deduct
You can deduct unreimbursed medical and dental expenses that exceed 7.5% of your AGI. Include expenses for you, your spouse, and dependents (or certain children of divorced parents).
Qualified examples:
- Doctor, dentist, and specialist visits
- Prescription medications and insulin
- Hospital care, lab tests, and diagnostic procedures
- Health insurance premiums (not paid pre-tax)
- Long-term care services and limited long-term care insurance premiums (age-based caps apply)
- Eyeglasses, hearing aids, crutches, wheelchairs, and breast pumps
- Qualified transportation and lodging for medical care (up to $50/night for lodging)
What’s not deductible: Cosmetic surgery (unless medically necessary), over-the-counter medicines (except insulin), health club dues, or funeral expenses.
Keep detailed records and subtract any reimbursements from insurance, HSAs, or FSAs.
State and Local Taxes (SALT) Deduction: Updated 2025 Limits
This is often one of the largest itemized deductions. For 2025, you can deduct state and local income taxes OR general sales taxes + real estate taxes + personal property taxes.
New 2025 cap: $40,000 ($20,000 if married filing separately).
Phaseout: Begins at modified AGI over $500,000 ($250,000 MFS) and floors at $10,000 ($5,000 MFS).
What qualifies:
- State and local income taxes withheld or paid via estimates
- Real estate taxes on personal property (not improvements)
- Personal property taxes (e.g., car registration based on value)
- Optional sales tax (use IRS tables or actual receipts)
Note: You cannot deduct federal taxes, fines, or certain fees. Refunds of previously deducted taxes may need to be included as income.
Home Mortgage Interest and Investment Interest
Home mortgage interest (including points) on your main or second home is deductible if the loan was used to buy, build, or substantially improve the home.
Debt limits (made permanent):
- Loans after Dec. 15, 2017: Up to $750,000 ($375,000 MFS)
- Loans before Dec. 15, 2017: Up to $1 million ($500,000 MFS)
Report amounts from Form 1098. Shared mortgages require prorating.
Investment interest (line 9) is deductible only up to your net investment income (use Form 4952). Personal interest is not deductible.
Charitable Contributions: Rules and Limits for 2025
Donations to qualified 501(c)(3) organizations (churches, charities, schools, etc.) are deductible when you itemize. Verify organizations at IRS.gov/TEOS.
What you can deduct:
- Cash, checks, and credit card donations
- Fair market value of property (clothing, household goods in good condition)
- Out-of-pocket volunteer expenses (14 cents/mile + tolls/parking)
AGI limits (varies by type of contribution):
- Cash: Generally up to 60% (or 30%)
- Property: Up to 20–30%
Requirements: Written acknowledgment for gifts ≥$250. Use Form 8283 for non-cash over $500. Carryovers allowed for 5 years.
Not deductible: Political contributions, raffle tickets, or the value of your time/services.
Casualty and Theft Losses
You can deduct personal casualty and theft losses only if attributable to a federally declared disaster. Losses must exceed $100 per event and 10% of AGI (after reimbursements). Use Form 4684.
Business or income-producing property losses have different rules.
Other Itemized Deductions
- Gambling losses (only to the extent of winnings)
- Federal estate tax on income in respect of a decedent
- Impairment-related work expenses for certain disabled individuals
- Certain repayments under claim of right (over $3,000)
How to Claim Itemized Deductions on Your Return?
- Gather records (receipts, 1098s, acknowledgments).
- Complete Schedule A (Form 1040) line by line.
- Enter the total on Form 1040, line 12 (if larger than standard deduction).
- E-file or mail with your return.
Download the latest 2025 Schedule A and instructions directly from IRS.gov.
Tips for Maximizing Your 2025 Itemized Deductions
- Bunch charitable donations into one year if near limits.
- Prepay state taxes (if allowed) before year-end.
- Track all medical expenses throughout the year.
- Use tax software to compare scenarios automatically.
- Consider donor-advised funds for large charitable gifts.
Common Mistakes to Avoid
- Forgetting to subtract reimbursements
- Claiming non-qualified medical or charitable expenses
- Missing the SALT phaseout calculation for high earners
- Deducting personal interest or non-disaster casualty losses
- Failing to substantiate large donations
Frequently Asked Questions About Itemized Deductions
Can I claim itemized deductions if I take the standard deduction?
No—choose one or the other. New 2025 deductions on Schedule 1-A are separate and available either way.
Do I need to itemize every year?
No. Compare each tax year.
What if my SALT exceeds the cap?
You can only deduct up to the limit (with phaseout for high incomes).
Where can I get the latest forms?
Visit IRS.gov/ScheduleA for 2025 forms and instructions.
For personalized advice, use IRS Free File, consult a tax professional, or review Publication 17 and Publication 502/526. Tax laws can change, so verify with official IRS sources for your 2025 return. Filing accurately can mean bigger refunds or lower taxes owed—start gathering your records now!