US Bank has issued an important notice to its customers in the US: making the wrong choice between itemizing deductions or taking the standard deduction could cost you a lot of money in taxes. With tax season underway, the bank has reinforced its commitment to helping taxpayers solve this dilemma. That way, they can make the most of the available tax benefits.
Itemize deductions or take the standard deduction? US Bank clears up the doubts
The standard deduction is a fixed amount that reduces your taxable income without the need to justify expenses. For 2025, it's $15,000 for single filers and $30,000 for married couples filing jointly. It's the most common option, since 90% of taxpayers choose it for its simplicity.
However, if your deductible expenses—such as mortgage interest, state and local taxes, medical expenses, or charitable donations—exceed that amount, itemizing deductions could be more advantageous. US Bank suggests comparing both options to determine which one offers greater tax savings.
Strategies to maximize deductions
US Bank recommends "bunching" certain deductible expenses into a single year to surpass the standard deduction threshold. If you can accelerate or delay medical expenses or charitable donations, you could benefit more by itemizing deductions in one year and taking the standard deduction in another.
Additionally, the bank advises contributing to tax-advantaged accounts like 401(k), IRA, HSA, or FSA. These contributions can reduce your taxable income and, in some cases, offer additional tax credits.
Tax credits: an additional opportunity
Beyond deductions, US Bank highlights the importance of tax credits, which directly reduce the amount of taxes you owe. Some credits are available for those who contribute to retirement plans, pay student loan interest, or incur certain educational expenses.
To make tax planning easier, US Bank offers its customers a resource center with calculators, explanatory videos, and practical tips. Customers can also get a 20% discount on TurboTax®, a popular tax preparation tool.
The bank also promotes the use of its digital tool to "pre-commit" tax refund savings, helping customers allocate those funds to savings accounts or certificates of deposit, thus maximizing their financial benefit. US Bank's commitment is clear: to help its customers make informed decisions about their tax strategy.