The standard deduction for 2021 and 2022 is $12,550 for standard filers. It's $25,100 and $18,800 for the head of household. The standard deduction refers to a specific dollar amount that lowers your overall taxable income. If you want to get the home improvement loan tax benefit, you can't take the standard deduction. You must itemize your deductions. Therefore, taking the standard deduction doesn't make sense if you spent more than $12,550 (or the equivalent for your tax status) on your home improvement loan.