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Standard and itemized deductions

SEE 1 Chapter 16 · IRS outline 3A1, 3A2, 3A3, 3A4, 3A5, 3A6, 3A7

Every return chooses between the standard deduction and Schedule A. With the 2025 standard deduction at $31,500 for couples, most people don't itemize, but those who do often have big numbers: medical bills, a $40,000 SALT cap, mortgage interest and generous giving. The SEE tests each line of Schedule A with traps: the 7.5% floor, the SALT phase-down, mortgage limits, tracing, charitable percentage limits, substantiation and disaster losses. Nadia's habit: fill Schedule A only after checking whether it beats the standard deduction.

In this chapter

1. Standard deduction or itemize?
2. Medical, dental, vision and long-term care
3. Taxes: SALT and the $40,000 cap
4. Interest: mortgage, points and investment interest
5. Charitable contributions
6. Casualty and theft losses, other itemized deductions and Form 1040-NR

This chapter has 6 lessons and 67 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• Standard deduction
• medical
• state and local taxes
• mortgage and investment interest
• charitable gifts
• casualty and theft losses
• other itemized deductions

Chapter 15: Adjustments to income and the new OBBBA deductions · Chapter 17: The qualified business income deduction