$\text{How}$ to $\text{Maximize}$ $\text{the}$ $\mathbf{\$32,200}$ $\text{Standard}$ $\text{Deduction}$
For most married couples filing jointly ($\text{MFJ}$), tax season involves taking the **Standard Deduction**. For the $\text{2025}$ tax year (filed in $\text{2026}$), the $\text{MFJ}$ Standard Deduction is projected to be around $\mathbf{\$32,200}$ (this figure is inflation-adjusted and highly accurate, but remains an estimate). This means you subtract $\text{\$32,200}$ directly from your Adjusted Gross Income ($\text{AGI}$), significantly lowering your taxable income.
$\text{2025}$ $\text{MFJ}$ $\text{Standard}$ $\text{Deduction}$ $\text{Target}$:
$\mathbf{\$32,200}$(Note: This figure is higher for taxpayers aged $\text{65}$ or blind.)
Since the Standard Deduction is so high, most taxpayers no longer benefit from itemizing. However, smart tax planning allows you to strategically use certain deductions **in addition** to the Standard Deduction to maximize your tax savings.
$\text{Strategy}$ $\text{1}$: $\text{Above}$-$\text{the}$-$\text{Line}$ $\text{Deductions}$
These deductions are subtracted from your gross income to determine your $\text{AGI}$. They are known as "Above-the-Line" deductions, meaning you can take them **even if you take the Standard Deduction.**
$\text{1}$. $\text{Health}$ $\text{Savings}$ $\text{Account}$ ($\text{HSA}$) $\text{Contributions}$
The $\text{HSA}$ is often called the "triple tax advantage" tool. Contributions are deductible above the line, and for $\text{2025}$, the family contribution limit is projected to be around $\mathbf{\$8,300}$.
- Maximization: Fully funding your $\text{HSA}$ reduces your $\text{AGI}$ by that amount, essentially increasing your total deduction beyond $\text{\$32,200}$.
$\text{2}$. $\text{Traditional}$ $\text{IRA}$ $\text{Contributions}$
If you or your spouse do not have a workplace retirement plan, or if your income is below certain thresholds, contributions to a Traditional $\text{IRA}$ may be fully deductible, also reducing your $\text{AGI}$ above the line.
$\text{Strategy}$ $\text{2}$: $\text{Deduction}$ $\text{Bunching}$ ($\text{For}$ $\text{Itemizers}$ $\text{on}$ $\text{the}$ $\text{Cusp}$)
If your itemized deductions (state and local taxes ($\text{SALT}$), mortgage interest, charitable giving) hover just below the $\text{\$32,200}$ mark, you are losing out. **Deduction bunching** is a powerful technique to optimize two years of deductions into one.
The goal is to itemize in one year and take the Standard Deduction in the other year:
- **Year 1 (Itemize):** Pay two years' worth of deductible expenses (e.g., make your $\text{Q4}$ $\text{2025}$ property tax payment early, and make your $\text{Q1}$ $\text{2026}$ payment late in $\text{2025}$). Pay a two-year lump sum to a Donor $\text{Advised}$ $\text{Fund}$ ($\text{DAF}$) for charitable giving. This pushes your itemized total **above $\mathbf{\$32,200}$**.
- **Year 2 (Standard Deduction):** Since you prepaid expenses, your itemized total will be very low in the following year ($\text{2026}$). You simply take the high $\text{2026}$ Standard Deduction (projected to be even higher than $\text{\$32,200}$).
$\text{Strategy}$ $\text{3}$: $\text{Qualified}$ $\text{Charitable}$ $\text{Distributions}$ ($\text{QCDs}$)
This strategy is for individuals aged **$\mathbf{73}$ or older** who must take Required Minimum Distributions ($\text{RMDs}$) from their retirement accounts. If you are charitably inclined, a $\text{QCD}$ allows you to move money directly from your $\text{IRA}$ to a qualified charity (up to $\mathbf{\$105,000}$ in $\text{2025}$).
- Maximization: The $\text{QCD}$ amount **counts toward your $\text{RMD}$** but is excluded from your $\text{AGI}$ entirely. This is better than itemizing the charitable deduction, because the $\text{QCD}$ reduces your $\text{AGI}$ (above the line), which can help qualify you for other tax breaks.
For most $\text{MFJ}$ couples, the Standard Deduction is the biggest tax break available. By strategically utilizing Above-the-Line deductions ($\text{HSA}$) and potentially using deduction bunching every other year, you can significantly enhance the benefit of that $\text{\$32,200}$ threshold.
Download our free $\text{2025}$ $\text{Tax}$ $\text{Optimization}$ $\text{Worksheet}$ to compare itemizing vs. bunching.
Start your side hustle today with FinRise Pro USA!
© 2025 FinRise Pro USA. Tax planning saves thousands.
$\text{How}$ to $\text{Maximize}$ $\text{the}$ $\mathbf{\$32,200}$ $\text{Standard}$ $\text{Deduction}$
For most married couples filing jointly ($\text{MFJ}$), tax season involves taking the **Standard Deduction**. For the $\text{2025}$ tax year (filed in $\text{2026}$), the $\text{MFJ}$ Standard Deduction is projected to be around $\mathbf{\$32,200}$ (this figure is inflation-adjusted and highly accurate, but remains an estimate). This means you subtract $\text{\$32,200}$ directly from your Adjusted Gross Income ($\text{AGI}$), significantly lowering your taxable income.
$\text{2025}$ $\text{MFJ}$ $\text{Standard}$ $\text{Deduction}$ $\text{Target}$:
$\mathbf{\$32,200}$(Note: This figure is higher for taxpayers aged $\text{65}$ or blind.)
Since the Standard Deduction is so high, most taxpayers no longer benefit from itemizing. However, smart tax planning allows you to strategically use certain deductions **in addition** to the Standard Deduction to maximize your tax savings.
$\text{Strategy}$ $\text{1}$: $\text{Above}$-$\text{the}$-$\text{Line}$ $\text{Deductions}$
These deductions are subtracted from your gross income to determine your $\text{AGI}$. They are known as "Above-the-Line" deductions, meaning you can take them **even if you take the Standard Deduction.**
$\text{1}$. $\text{Health}$ $\text{Savings}$ $\text{Account}$ ($\text{HSA}$) $\text{Contributions}$
The $\text{HSA}$ is often called the "triple tax advantage" tool. Contributions are deductible above the line, and for $\text{2025}$, the family contribution limit is projected to be around $\mathbf{\$8,300}$.
- Maximization: Fully funding your $\text{HSA}$ reduces your $\text{AGI}$ by that amount, essentially increasing your total deduction beyond $\text{\$32,200}$.
$\text{2}$. $\text{Traditional}$ $\text{IRA}$ $\text{Contributions}$
If you or your spouse do not have a workplace retirement plan, or if your income is below certain thresholds, contributions to a Traditional $\text{IRA}$ may be fully deductible, also reducing your $\text{AGI}$ above the line.
$\text{Strategy}$ $\text{2}$: $\text{Deduction}$ $\text{Bunching}$ ($\text{For}$ $\text{Itemizers}$ $\text{on}$ $\text{the}$ $\text{Cusp}$)
If your itemized deductions (state and local taxes ($\text{SALT}$), mortgage interest, charitable giving) hover just below the $\text{\$32,200}$ mark, you are losing out. **Deduction bunching** is a powerful technique to optimize two years of deductions into one.
The goal is to itemize in one year and take the Standard Deduction in the other year:
- **Year 1 (Itemize):** Pay two years' worth of deductible expenses (e.g., make your $\text{Q4}$ $\text{2025}$ property tax payment early, and make your $\text{Q1}$ $\text{2026}$ payment late in $\text{2025}$). Pay a two-year lump sum to a Donor $\text{Advised}$ $\text{Fund}$ ($\text{DAF}$) for charitable giving. This pushes your itemized total **above $\mathbf{\$32,200}$**.
- **Year 2 (Standard Deduction):** Since you prepaid expenses, your itemized total will be very low in the following year ($\text{2026}$). You simply take the high $\text{2026}$ Standard Deduction (projected to be even higher than $\text{\$32,200}$).
$\text{Strategy}$ $\text{3}$: $\text{Qualified}$ $\text{Charitable}$ $\text{Distributions}$ ($\text{QCDs}$)
This strategy is for individuals aged **$\mathbf{73}$ or older** who must take Required Minimum Distributions ($\text{RMDs}$) from their retirement accounts. If you are charitably inclined, a $\text{QCD}$ allows you to move money directly from your $\text{IRA}$ to a qualified charity (up to $\mathbf{\$105,000}$ in $\text{2025}$).
- Maximization: The $\text{QCD}$ amount **counts toward your $\text{RMD}$** but is excluded from your $\text{AGI}$ entirely. This is better than itemizing the charitable deduction, because the $\text{QCD}$ reduces your $\text{AGI}$ (above the line), which can help qualify you for other tax breaks.
For most $\text{MFJ}$ couples, the Standard Deduction is the biggest tax break available. By strategically utilizing Above-the-Line deductions ($\text{HSA}$) and potentially using deduction bunching every other year, you can significantly enhance the benefit of that $\text{\$32,200}$ threshold.
Download our free $\text{2025}$ $\text{Tax}$ $\text{Optimization}$ $\text{Worksheet}$ to compare itemizing vs. bunching.
Start your side hustle today with FinRise Pro USA!
© 2025 FinRise Pro USA. Tax planning saves thousands.