
Key Takeaways
- Your filing status can make a big difference in how much income tax you pay.
- Different filing statuses have different tax brackets and Standard Deduction amounts.
- The Standard Deduction and tax brackets generally increase each year.
- The payment of mortgage interest, medical bills, state property taxes, and charitable contributions are eligible to be itemized.
Income tax brackets
As your income goes up, portions of your income are subject to different tax brackets that progressively increase the percentage of tax you pay on that income. If you file as Single in 2025, for instance, you'd pay 10 percent on your taxable income up to $11,925 then 12 percent on income starting with that up to $48,475.
Choosing a different status may change the point at which you move between brackets. A married couple filing jointly in 2025 stays at 10 percent until their joint taxable income reaches $23,850, while for Head of Household, the cutoff is $17,000.
Claiming the Standard Deduction
The Standard Deduction is a set amount you can deduct to reduce the amount of your income that is taxed. It is generally used by people who don’t have enough deductible expenses to make it worth itemizing their deductions.
Although the amounts generally increase each year, in 2025 individuals and married couples filing separately can claim a $15,750 Standard Deduction, while couples Married Filing Jointly and those filing as Qualified Surviving Spouses can claim a $31,500 deduction. Filing as Head of Household gives you a $23,625 deduction. The Standard Deduction goes up for filers who are blind or who are 65 or older.
TurboTax Tip:
You may be able to lower your taxes by itemizing deductions if the total of those deductions is larger than the Standard Deduction for your filing status.
Itemizing deductions
You usually have the option to itemize deductions if the total of those deductions is larger than the Standard Deduction for your filing status. Generally, the payment of mortgage interest, medical bills, state property taxes and charitable contributions you make are eligible to be itemized.
Your ability to lower your taxes by itemizing depends on your filing status since the larger the Standard Deduction you are eligible to claim, the more expenses you must pay during the year to make it worth itemizing.
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