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You can take either the standard deduction or itemized deductions on your tax return. You can't do both. The question is which method saves you more money. Here's what it boils down to: If your standard deduction is less than your itemized deductions, you probably should itemize.

The standard deduction is a specific dollar amount that reduces the amount of income on which you're taxed. Your standard deduction consists of the sum of the basic standard deduction and any additional standard deduction amounts for age and/or blindness.

If the total for your itemized expenses is greater than the standard deduction for your filing status, it makes sense to itemize. Allowable itemized deductions include mortgage interest, charitable gifts, unreimbursed medical expenses, and state and local taxes.

To itemize is to make a list. If you work at a store that sells pet fish, you might need to itemize your stock of fish — separately listing the number of goldfish, cuttlefish, and jellyfish. When you place items, or individual things, on a list, you itemize them.

The difference between a standard deduction and an itemized deduction is that a standard deduction is a lump sum you can subtract from your taxable income, but an itemized deduction is an expense you can subtract from your taxable income.

Another way to check whether you itemized your deductions or took the standard deduction is to look at your Form 1040. Line 9 lets you enter the amount that you are deducting for itemized or standard deductions. If you entered the amount of the standard deduction ($12,950 for 2022), you took the standard deduction.

You should itemize deductions if your allowable itemized deductions are greater than your standard deduction or if you must itemize deductions because you can't use the standard deduction. You may be able to reduce your tax by itemizing deductions on Schedule A (Form 1040), Itemized Deductions.