Standard vs. Itemized Deductions — How to Apply New Rules Effectively- Part 2

​In Part 1, we covered several new and enhanced deductions that may be available to individual taxpayers in upcoming filing seasons. In this article, we’ll focus on how deductions are applied, including standard versus itemized deductions, documentation requirements, and helpful IRS tools.
Understanding how these pieces work together is key to making informed tax decisions.

Standard Deduction vs. Itemizing: What’s Different Now?
One important change is that many of the new deductions may be available to both:

• Taxpayers who take the standard deduction
• Taxpayers who itemize deductions

This represents a shift from past rules, though income limits and eligibility requirements still apply.

Standard Deduction Amounts for Tax Year 2025
The IRS adjusts standard deduction amounts annually for inflation. For tax year 2025, the amounts are:

• $15,750 — Single or Married Filing Separately
• $31,500 — Married Filing Jointly or Qualifying Surviving Spouse
• $23,625 — Head of Household

Most taxpayers continue to take the standard deduction, but itemizing may make sense if deductible expenses exceed these amounts.

Common Itemized Deductions
Taxpayers who itemize may deduct qualifying expenses such as:

• State and local income or sales taxes
• Real and personal property taxes
• Mortgage interest
• Charitable contributions
• Medical and dental expenses
• Certain casualty or disaster losses

These deductions are subject to dollar limits and substantiation requirements.

Documentation Still Matters
Regardless of which deductions apply, taxpayers must keep records to support what they claim, including:

• Receipts and statements
• Loan and interest documentation
• Proof of payment
• Accurate income records

Good documentation helps ensure deductions are applied correctly and reduces audit risk.

IRS Tools Available to Taxpayers
Several IRS resources can help taxpayers determine eligibility:

• IRS Free File for taxpayers under income thresholds
• Free File Fillable Forms for all income levels
• IRS Interactive Tax Assistant for deduction and credit eligibility

While helpful, these tools work best when paired with proactive planning.

Final Thought
Tax filing reports what already happened.
Tax planning helps shape future outcomes.
At GLM Accounting & Business Advisory, we help clients understand how changing tax rules apply to their unique situation — and how to plan with intention rather than react under pressure.
If you have questions about how these deductions may affect you, now is the right time to start the conversation.