Part 1 Advising the Individual Taxpayer question: married couple's itemized deductions

Part 1Advising the Individual Taxpayer

A married couple's itemized deductions each year are about $30,000, just under their standard deduction. Which strategy may lower their total tax over two years?

A Paying two years of gifts in one year and itemizing only that year
B Filing separately so one spouse can itemize every year
C Spreading gifts evenly so both years are below the standard deduction
D Itemizing every year anyway to keep records consistent

Show the answer and explanation

Answer: A. Paying two years of gifts in one year and itemizing only that year

Bunching deductible payments such as charitable gifts (for example through a donor-advised fund) into one year can push itemized deductions well above the $31,500 joint standard deduction for 2025 that year, while taking the standard deduction the next. Filing separately does not help, because if one spouse itemizes the other must too. Source: IRC 63(b)-(c), 170; Pub. 526 (2025); 2025 Form 1040 instructions. Tax year: 2025 (law as of 31 Dec 2025).

Common mistake

Assuming deductions are worth the same whenever they are paid.

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Original study material mapped to the public IRS SEE content outlines; not a real exam question.Not affiliated with or endorsed by the IRS or PSI. Verify figures and rules against current guidance before relying on them.