Comparison of standard deduction vs. itemized deductions is one of the major aspects in tax preparation. Both these approaches have a common goal reducing your taxable income. However, the choice of the option that suits your situation best is determined by your personal financial circumstances. To find out what is better, most people need to decide whether they should choose standard deduction or itemized deductions. Knowing the difference between standard deduction and itemized deduction helps to avoid costly mistakes.