Schedule A · 2025 Tax Year · OBBBA Changes · Standard vs Itemized
Itemized Deductions List 2025: What Can You Deduct on Schedule A?
For 2025, itemizing beats the standard deduction only if your qualified expenses exceed $15,000 (single) or $30,000 (married). This guide covers every Schedule A category, the OBBBA $40,000 SALT cap, mortgage interest limits, medical expense floors, and who actually benefits from itemizing.
Should you itemize or take the standard deduction? Enter your actual expenses and filing status for an instant side-by-side comparison with a clear recommendation.
The 2025 itemized deductions on Schedule A are: state and local taxes (SALT) up to $40,000; mortgage interest on up to $750,000 of debt; charitable contributions (cash up to 60% of AGI); medical expenses exceeding 7.5% of AGI; and casualty losses from federally declared disasters. You should itemize only when your total qualified expenses exceed the standard deduction for your filing status. For most filers, the standard deduction is higher.
Key Takeaways
Standard deduction for 2025: $15,000 single, $30,000 MFJ, $22,500 HOH
OBBBA raised the SALT cap to $40,000 for TY 2025 (was $10,000 under TCJA)
Mortgage interest deduction: limited to $750K of acquisition debt (post-Dec 15, 2017 loans)
Medical expenses: only the amount above 7.5% of AGI is deductible
No Pease limitation on total itemized deductions for TY 2025
MFS filers: if one spouse itemizes, the other must also itemize
Standard Deduction vs. Itemized: The Basic Decision
Every U.S. taxpayer chooses between two deduction methods: the standard deduction (a flat amount based on filing status) or itemized deductions (a sum of specific qualified expenses listed on Schedule A). You take whichever produces the larger deduction.
For 2025, the standard deduction amounts are:
Filing Status
Standard Deduction
Add-On (65+/blind)
Single
$15,000
+$2,000 per qualifying condition
Married Filing Jointly
$30,000
+$1,600 per qualifying person, per condition
Head of Household
$22,500
+$2,000 per qualifying condition
Married Filing Separately
$15,000
+$1,600 per qualifying condition
Qualifying Surviving Spouse
$30,000
+$1,600 per qualifying condition
Source: IRS Rev. Proc. 2024-40; IRS Topic 551.
Itemizing makes sense when your total qualified Schedule A expenses exceed these thresholds. For most filers the standard deduction wins. The OBBBA expanded the SALT cap to $40,000 for 2025, which increased the pool of high-tax-state homeowners for whom itemizing now makes sense again.
1. State and Local Taxes (SALT) - Up to $40,000
The SALT deduction covers state and local income taxes (or sales taxes - you elect one) plus property taxes on real estate you own. Under the One Big Beautiful Bill Act (P.L. 119-21, §70120), the cap for 2025 is $40,000.
What qualifies
State and local income taxes paid in 2025 (or sales taxes in lieu of income taxes)
Real estate property taxes on personal residences and other non-business real property
Personal property taxes based on value (such as vehicle registration fees in some states)
What does not qualify
Federal income taxes
Foreign income taxes (claimed separately as a credit or deduction)
Property taxes on rental or business property (deducted on Schedule E or C)
Fees and assessments that are not based on the value of property
Phase-out for high earners
The $40,000 cap phases out for taxpayers with MAGI above $500,000. The cap is reduced by $300 per $1,000 of MAGI over the threshold, down to a floor of $10,000. At approximately $600,000 MAGI the cap returns to $10,000. MFS filers have a $20,000 cap and a $250,000 phase-out threshold. The $40,000 cap expires after TY 2029.
Note: You cannot deduct both state income taxes and state sales taxes. You elect one or the other each year. Most filers in income-tax states choose income taxes.
2. Mortgage Interest - Up to $750,000 Acquisition Debt
You can deduct interest on a home mortgage used to buy, build, or substantially improve a qualified home. This includes your primary home and one second home.
Debt limits
Loans taken out after December 15, 2017: interest is deductible on up to $750,000 of acquisition debt ($375,000 for MFS)
Loans from before December 16, 2017: prior $1,000,000 limit is grandfathered in
Refinancing a grandfathered loan: the old limit applies only up to the original remaining balance
What qualifies
Interest on a first mortgage, second mortgage, or home equity loan where proceeds were used to buy or improve the home
Points paid on loan origination (fully deductible in the year paid for purchase loans; spread over loan life for refinances)
Prepayment penalties treated as interest
What does not qualify
Interest on home equity debt used for non-home purposes (vacation, car purchase, credit card payoff)
Mortgage insurance premiums (deduction expired; Congress has not extended it for 2025)
Interest on investment property mortgages (deducted on Schedule E)
Your lender sends Form 1098 each January with the total interest paid. Use that amount, subject to the debt limit calculation if your loan balance exceeds $750,000.
3. Charitable Contributions
Cash and property donations to qualifying 501(c)(3) organizations are deductible. The limits depend on the type of contribution and the type of organization.
AGI limits
Cash to public charities: up to 60% of AGI
Appreciated property to public charities: up to 30% of AGI (at fair market value)
Cash to private foundations: up to 30% of AGI
Property to private foundations: up to 20% of AGI
Unused amounts can be carried forward for up to 5 years
Documentation requirements
Cash under $250: a bank record or written receipt is sufficient
Cash of $250 or more: a written acknowledgment from the charity is required, obtained before you file
Non-cash donations over $500: Form 8283 is required
Non-cash donations over $5,000: a qualified appraisal is generally required
What does not qualify
Donations to individuals
Political contributions
Value of your time or services
Raffle tickets and lottery tickets
Dues or fees to social clubs, chambers of commerce, civic leagues
4. Medical and Dental Expenses - Above 7.5% of AGI
You can deduct qualified medical and dental expenses paid for yourself, your spouse, and your dependents - but only the amount that exceeds 7.5% of your adjusted gross income.
This floor means only a small number of filers benefit. A taxpayer with $80,000 AGI must have more than $6,000 in out-of-pocket medical costs before a single dollar is deductible.
What qualifies
Health insurance premiums paid out of pocket (not from an HSA or employer plan)
Long-term care insurance premiums (subject to age-based limits)
Doctor, dentist, and hospital fees
Prescription medications and insulin
Eyeglasses, contact lenses, and corrective procedures
Mental health care and substance abuse treatment
Medical equipment (wheelchairs, hearing aids, CPAP machines)
Transportation to and from medical care (IRS standard mileage or actual costs)
What does not qualify
Cosmetic surgery (unless correcting a deformity from disease, accident, or birth defect)
Over-the-counter medications without a prescription
Gym memberships (even when recommended by a doctor)
Amounts reimbursed by insurance or paid from an HSA or FSA
Funeral expenses
5. Casualty and Theft Losses
For 2025, casualty and theft loss deductions are limited to losses attributable to a federally declared disaster. Personal casualty losses from non-disaster events (fire, flood outside a declared disaster area, theft) are not deductible on Schedule A.
The deduction is calculated as: (loss amount minus $100 per event) minus 10% of AGI. The $100 and 10% floors mean only significant losses in declared disaster areas generate a deduction.
If you suffered a disaster loss, check the IRS disaster relief page or the FEMA declarations list to confirm your county qualifies.
6. Miscellaneous Deductions (Limited Category)
The Tax Cuts and Jobs Act (2018-2025) suspended most miscellaneous itemized deductions subject to the 2% AGI floor. For 2025, the following are not deductible:
Unreimbursed employee business expenses
Tax preparation fees
Investment advisory fees
Home office expenses for W-2 employees
Union dues and professional subscriptions
Items that remain deductible regardless of the 2% floor include: gambling losses (up to gambling winnings), impairment-related work expenses for disabled taxpayers, and certain unrecovered investment in a pension or annuity.
Self-employed workers deduct business expenses on Schedule C, not Schedule A. Home office, vehicle, equipment, and professional fees are available to self-employed filers regardless of whether they itemize.
Real-World Scenario: Does a New Jersey Homeowner Benefit from the OBBBA SALT Cap?
Maria is single in New Jersey. She owns a home with a $500,000 mortgage (post-2017) and paid $12,000 in state income tax and $8,000 in property taxes in 2025. Her AGI is $120,000.
Itemized Deduction Calculation
State income tax + property tax (raw)$20,000
SALT cap (2025 OBBBA)$20,000 (under $40K cap)
Mortgage interest (est. 6.5% on $500K)$32,500
Charitable contributions$2,000
Medical expenses (7.5% of $120K = $9,000 floor)$0 (paid $7,000 - below floor)
Total itemized deductions$54,500
Standard deduction (single 2025)$15,000
Benefit from itemizing+$39,500
Maria saves substantially by itemizing. Her mortgage interest alone eclipses the standard deduction. Under the pre-OBBBA $10,000 SALT cap, she still would have itemized because of her mortgage - but the expanded cap recovers an additional $10,000 in SALT that was previously blocked.
Practitioner Insight
The most common itemizing mistake I see is taxpayers forgetting that Schedule A is an all-or-nothing choice. You cannot itemize some deductions and use the standard deduction for others. If your Schedule A total falls even $1 short of your standard deduction, you take the standard - and all your documentation effort is irrelevant that year.
Track borderline years carefully. If your itemized total is within $2,000 of the standard deduction threshold, consider bunching charitable contributions in alternating years. In even years, give nothing. In odd years, make two years of donations at once. This pushes you over the threshold every other year instead of falling short every year.
For MFS filers: if your spouse itemizes, you are required to itemize too - even if your standard deduction would have been larger. Coordinate with your spouse before either of you files.
Nausheen Shahid (LMN Tax Inc.)
When Itemizing Does Not Work as Expected
You paid estimated state taxes in December to inflate your SALT deduction - the IRS has long challenged prepaid state taxes with no legal liability yet due
You donated a vehicle at a claimed value of $5,000+ but did not get a qualified appraisal - the deduction is limited to the charity's actual sales proceeds
You claimed home equity loan interest but the proceeds paid off credit card debt - interest on debt not used for the home is not deductible
You filed married filing separately and failed to coordinate with your spouse - if one spouse itemizes, the other loses the standard deduction automatically
Your medical expenses were reimbursed by an FSA or HSA the following year - those reimbursed amounts must be included as income, effectively clawing back the prior deduction
You claimed property taxes from a title company estimate at closing rather than the actual taxes assessed - only taxes actually assessed and paid are deductible
Decision Step: Should You Itemize This Year?
Quick-Check Framework
Add up your likely Schedule A amounts: SALT paid (up to $40K), mortgage interest from Form 1098, charitable receipts, and any medical costs over 7.5% of your AGI. Compare to your standard deduction.
If itemized total exceeds standard deduction: itemize. If not: take the standard. The difference is your additional tax savings from itemizing.
Itemized deductions for 2025 are specific expenses you list on Schedule A of Form 1040 instead of taking the standard deduction. The main categories are: SALT up to $40,000 (OBBBA), mortgage interest on up to $750,000 of debt, charitable contributions (cash up to 60% of AGI), medical expenses exceeding 7.5% of AGI, and casualty losses from federally declared disasters. You itemize only when your total qualified expenses exceed the standard deduction for your filing status.
How much is the standard deduction for 2025?
The 2025 standard deduction is $15,000 for single filers and married filing separately; $30,000 for married filing jointly and qualifying surviving spouse; and $22,500 for head of household. Taxpayers age 65 or older or legally blind receive an additional $2,000 (single/HOH) or $1,600 per qualifying person (MFJ). Source: IRS Rev. Proc. 2024-40.
What is the SALT deduction limit for 2025?
For 2025, the SALT cap is $40,000 under the OBBBA. This covers state and local income taxes or sales taxes (not both) plus property taxes. The cap phases out above $500,000 MAGI at $300 per $1,000, with a $10,000 floor. MFS filers have a $20,000 cap and $250,000 threshold. The expanded cap expires after TY 2029, reverting to $10,000.
Can you deduct mortgage interest in 2025?
Yes. Interest on mortgages used to buy, build, or substantially improve a qualified home is deductible. For loans after December 15, 2017, the debt limit is $750,000 ($375,000 MFS). Pre-December 16, 2017 loans retain the $1,000,000 limit. Home equity loan interest is deductible only when the proceeds were used for the home itself.
What qualifies as a medical expense deduction?
Qualifying expenses include health insurance premiums paid out of pocket, prescription medications, doctor and hospital fees, dental and vision care, medical equipment, and transportation to medical care. Only the amount above 7.5% of your AGI is deductible. Expenses reimbursed by insurance or paid from an HSA do not count.
What charitable deductions are allowed for 2025?
Cash donations to public charities are deductible up to 60% of AGI. Appreciated property to public charities is up to 30%. Written acknowledgment is required for any single cash donation of $250 or more. Form 8283 is required for non-cash donations over $500. Donations to individuals, political organizations, or candidates do not qualify.
Is there a limit on total itemized deductions in 2025?
No. For 2025, there is no overall Pease limitation on total itemized deductions. The TCJA eliminated this limitation for 2018-2025. Each deduction category still has its own rules (SALT cap, AGI floors, debt limits), but there is no aggregate phase-out for high earners in TY 2025.