Tax Deduction Calculator 2024
Compare standard vs itemized deductions to maximize your tax savings. Our calculator helps you determine which deduction method saves you the most money.
How to Choose Your Deduction Method
Decision Process
Choose the method that gives you the larger deduction amount
Calculate Your Itemized Deductions
Add up all qualifying itemized deductions: SALT (up to $10,000), mortgage interest, charitable contributions, medical expenses over 7.5% of AGI, etc.
Compare to Standard Deduction
Compare your total itemized deductions to the standard deduction for your filing status.
Choose the Higher Amount
Take whichever deduction method gives you the larger total deduction amount.
Calculate Tax Savings
Multiply the additional deduction amount by your marginal tax rate to estimate tax savings.
2024 Deduction Limits and Rules
State and Local Tax (SALT)
Limited to $10,000 ($5,000 if married filing separately)
Mortgage Interest
On loans up to $750,000 for homes purchased after 12/15/2017
Charitable Contributions
Generally limited to 60% of AGI for cash contributions
Medical Expenses
Only amounts exceeding 7.5% of your AGI are deductible
Investment Interest
Limited to net investment income for the year
Casualty Losses
Only federally declared disaster losses are deductible
Understanding Tax Deductions
Tax deductions reduce your taxable income, which in turn reduces the amount of tax you owe. You can choose between taking the standard deduction (a fixed amount based on your filing status) or itemizing your deductions (listing specific qualifying expenses). The key is choosing the method that gives you the larger deduction.
Standard Deduction 2024
- • Single: $14,600
- • Married Filing Jointly: $29,200
- • Married Filing Separately: $14,600
- • Head of Household: $21,900
- • Benefit: Simple, no documentation required
Common Itemized Deductions
- • State & Local Taxes: Up to $10,000
- • Mortgage Interest: On qualified home loans
- • Charitable Contributions: To qualified organizations
- • Medical Expenses: Exceeding 7.5% of AGI
- • Investment Interest: Subject to limitations
2024 Standard Deduction
For unmarried individuals
For married couples filing together
For unmarried with qualifying dependents
For married couples filing separately
✅ Advantages
- • Simple and automatic
- • No record keeping required
- • Available to all taxpayers
- • Reduces tax preparation time
Itemized Deductions
State and Local Taxes (SALT)
State income tax, local income tax, property tax
Limited to $10,000 per year
Mortgage Interest
Interest on home loans up to $750,000
Home equity loan interest (if used for home improvements)
Charitable Contributions
Cash and property donations to qualified organizations
Generally limited to 60% of AGI for cash donations
Medical and Dental Expenses
Expenses exceeding 7.5% of AGI
Includes insurance premiums, treatments, prescriptions
✅ When to Itemize
- • Total itemized > standard deduction
- • High state/local taxes
- • Significant mortgage interest
- • Large charitable contributions
- • High medical expenses
Deduction Optimization Strategies
Smart strategies to maximize your deductions and minimize your tax liability.
Bunching Deductions
Accelerate deductible expenses into one year to exceed the standard deduction threshold.
Example: Pay two years of property taxes in one year, then take the standard deduction the next year.
Smart Charitable Giving
Donate appreciated assets instead of cash to avoid capital gains tax while getting a full deduction.
Tip: Use a donor-advised fund to bunch multiple years of charitable giving into one tax year.
Health Savings Account
Maximize HSA contributions for triple tax benefits: deductible contributions, tax-free growth, and tax-free withdrawals.
2024 Limits: $4,300 (individual) / $8,550 (family) + $1,000 catch-up (55+)
Common Tax Deductions Checklist
Above-the-Line Deductions
These reduce your AGI and are available even if you take the standard deduction.
Business Deductions (Schedule C)
For self-employed individuals and business owners.
Deduction FAQ
Should I itemize or take the standard deduction?
Itemize only if your total itemized deductions exceed the standard deduction for your filing status. Most taxpayers (about 90%) benefit more from the standard deduction.
Can I switch between standard and itemized deductions each year?
Yes, you can choose whichever method gives you the larger deduction each year. This flexibility allows you to optimize your tax strategy annually.
What records do I need to keep for itemized deductions?
Keep receipts, bank statements, and documentation for all deductible expenses. The IRS recommends keeping tax records for at least 3 years, or 6 years if you underreported income by 25% or more.