Category: Taxes Made Simple

Subcategory: Deduction Strategies

🔍 Overview: Choosing Between Standard and Itemized Deductions

With the standard deduction permanently increased under the One Big, Beautiful Bill, many taxpayers are wondering if it still makes sense to itemize. While the standard deduction offers a simplified route, itemizing may lead to greater tax savings for those with large deductible expenses such as mortgage interest, charitable contributions, or medical costs.

📊 2025 Standard Deduction Amounts

• 🧑‍💼 Single or Married Filing Separately: $15,750
• 👨‍👩‍👧‍👦 Head of Household: $23,625
• 💍 Married Filing Jointly: $31,500
• 👵 Seniors 65+: Additional $6,000 per person (phased out above $75,000 single / $150,000 joint)

📌 These amounts are indexed for inflation and will increase each year through 2028.

🧾 When Should You Itemize?

You may want to itemize deductions if your qualified expenses exceed the standard deduction. These may include:

• Home mortgage interest
• Medical and dental expenses (over 7.5% of AGI)
• Charitable donations
• State and local taxes (SALT), up to $40,000 in 2025

Use our interactive deduction calculator to estimate your deduction strategy.

🏛️ What the One Big, Beautiful Bill Added for 2025–2028

• 🚗 Up to $10,000 deduction for U.S.-assembled car loan interest (phases out at $100,000/$200,000)
• ⏱️ Up to $12,500 deduction for overtime income ($25,000 for joint filers)
• 💵 Tip income deduction of up to $25,000
• 🏙️ Increased SALT cap: $40,000 in 2025, growing 1% annually through 2029

💼 Best Practices for Audit-Proof Deduction Tracking

Whether you're taking the standard deduction or itemizing, the IRS can still request documentation. Here's how to make sure you're covered:

✅ Option 1: Use Zoho Expense

• 📸 Snap and attach receipt photos to each expense
• 📂 Categorize expenses properly (Medical, Charity, Mortgage, etc.)
• 🔄 Sync automatically with Zoho Books or your Gbooks account

🆓 Option 2: Use Cloud Storage Apps

• Create a folder in Google Drive or Microsoft OneDrive labeled “2025 Receipts”
• Use the mobile app to snap photos of each receipt as you spend
• Most free email accounts include 50GB of free storage

These simple habits ensure you're audit-ready—even if you’re claiming the standard deduction.

📞 Need help? Ask a Gbooks advisor to review your Zoho Expense log or help organize your digital receipt folder before tax filing season.

📚 Related Articles

• Charitable Contribution Deductions
• Where to Mail IRS Forms

🏷️ Tags

standard deduction 2025, itemized deduction 2025, tax strategy, IRS deductions, Zoho Expense, receipt tracking, One Big Beautiful Bill, tip income deduction, car loan deduction, audit-proof tax records