Mistake 2: Missing the New “OBBBA” Standard Deduction
Inflation and new legislation have pushed the standard deduction significantly higher for the 2025 tax year. This is a critical number because it determines whether you should itemize (list out your mortgage interest, charity, and state taxes) or just take the flat rate.
For most taxpayers, the standard deduction is now so high that itemizing no longer makes financial sense. Taking the lower itemized amount by accident is literally throwing money away.
2025 Standard Deduction Amounts (Filing in 2026)
| Filing Status | Standard Deduction |
|---|---|
| Single / Married Filing Separately | $15,750 |
| Married Filing Jointly | $31,500 |
| Head of Household | $23,625 |
Note for Seniors: If you were 65 or older by the end of 2025, you get an even bigger break. Single filers add $2,050 to the amounts above, and married couples add $1,650 per qualifying person.
