Save Money on Taxes by Bunching Itemized Deductions
Discover how timing of your deductible expenses in 2025 and 2026 could unlock valuable tax savings.
November 2025
One way to boost tax savings is by bunching itemized deductions. By combining two or more years’ worth of tax-deductible expenses into one year, you can lower your taxes over the two years. Using this strategy, in the first year you itemize your expenses to exceed the standard deduction. The following year you take the standard deduction.
For example, Tom and Brenda file jointly, have taxable income of $205,000 and are in the 24% bracket for 2025. Their deductible taxes are $12,000, interest of $5,500 and potential charitable contributions of $10,500 in 2025 and $12,500 in 2026. With these facts, their itemized deductions total $28,000 in 2025 and $30,000 in 2026, which is less than the standard deduction and thus they receive no tax benefit from their contributions. They give their 2026 charitable contributions in 2025 and donate a total of $23,000 in 2025 instead of splitting between 2025 and 2026. By giving their 2026 charitable contributions in 2025, they save $2,160 in tax ($9,000 x 24%), which is the increase in total 2-year deductions.
Standard Deduction in 2025 and 2026
The One Big Beautiful Bill Act (OBBBA) signed by President Trump on July 4, 2025 permanently raised the standard deduction amounts. For 2025 the standard deduction is $15,750 for single filers and $31,500 for married filing jointly. For 2026, the amounts increase to $16,100 for single filers and $32,200 for married filing jointly.
In practice this means a married couple filing jointly must have more than $31,500 in itemized deductions to benefit in 2025, and $32,200 in 2026. Bunching is helpful when you anticipate your itemized deductions will fall short of the standard deduction.
New Charitable Deduction in 2026 for Non-Itemizers
Starting in 2026, taxpayers who do not itemize can get a small tax benefit for giving to charity. Non-itemizers receive an above-the-line deduction up to $1,000 for single filers ($2,000 married filing jointly) for cash gifts to qualifying public charities. This deduction is in addition to the standard deduction. The gift must be a cash contribution to a public charity (donations to donor-advised funds or private foundations do not qualify). Taxpayers should keep receipts, because this deduction is claimed on the front of Form 1040 and is only available up to the limit.
New Senior Deduction (Age 65+)
OBBBA introduced a new “senior” deduction. Effective from 2025 through 2028, taxpayers age 65 or older get an additional deduction of up to $6,000 ($12,000 for married couple filing jointly) that is available to both itemizers and non-itemizers. It phases out for Modified Adjusted Gross Income over $75,000 ($150,000 for joint filers).
For example, a married couple both age 65 or older could claim their $31,500 standard deduction plus an extra $12,000, for $43,500 total in 2025.
If one or both “seniors” are also required to take a required minimum distribution from an IRA, and are over 70 ½, making a qualified charitable donation directly from their IRA account, could also help reduce the taxpayers adjusted gross income below the modified adjusted gross income threshold and allow the full available senior deduction.
Action Steps
Thoughtful planning around the timing of deductible expenses can provide meaningful tax savings, especially under the updated rules taking effect in 2025 and 2026. With higher standard deductions, a new additional deduction for taxpayers age 65 and older, and the introduction of an above-the-line charitable deduction for non-itemizers in 2026, strategies such as bunching itemized deductions into a single year may be particularly beneficial. Because these rules affect each taxpayer differently, it is important to speak with your accountant. They can review your specific financial situation and help determine whether bunching deductions or other planning techniques will offer the greatest advantage.