Key Takeaways
- Beyond the well-known Standard Deduction, many taxpayers are unaware of numerous other deductions that could lower their tax bills, including which legal fees you can write off. The importance of being informed about these opportunities to maximize tax savings can’t be overemphasized.
- Taxpayers can take advantage of deductions for various expenses, such as student loan interest, IRA contributions, self-employed retirement plans, and health-related costs like insurance premiums and out-of-pocket medical expenses.
- Self-employed people have access to a range of deductions designed for them, including write-offs for certain health insurance premiums, home offices, business expenses, qualified business income, and a portion of their self-employment tax.
- Many deductions, such as those for medical and dental expenses, state and local taxes, mortgage interest, and gifts to charity, require taxpayers to itemize their deductions. However, itemizing is beneficial only if the total of all your itemized deductions exceeds the Standard Deduction available for your filing status.
Do you know all the tax deductions you can claim?
Most people know about the Standard Deduction, but widespread familiarity with certain other common tax deductions is a bit more iffy. So, to help you take advantage of all the write-offs you’re entitled to claim, here are 23 tax deductions that are available to millions of Americans. Check them out to see if you qualify when you’re filing your next federal income tax return.
1. State and local taxes (SALT) deduction
Uncle Sam isn't the only one taxing you. You pay taxes to your state and local governments, too. However, if you claim itemized deductions, you can write off some of those state and local taxes on your federal income tax return using what's known as the "SALT deduction" (SALT stands for state and local taxes).
The following state and local taxes can be deducted on your federal return as part of the SALT deduction:
- income or general sales taxes
- real estate taxes
- personal property taxes
Note that you can deduct income or sales taxes – but not both.
Should you write off state income taxes or state sales taxes to save more?
For most people, you’ll save more by deducting your state income tax. However, if you live in a state with no income tax, you’ll likely want to go with the sales tax deduction. Or, if you made a big purchase during the tax year (perhaps you bought a wedding ring or a car), the sales tax write-off might be a better deal, even if you also paid state income taxes for the year.
Is there a limit to the SALT deduction?
For the 2025 tax year, the SALT deduction is capped at $40,000, or $20,000 if you’re married and filing a separate return (up from $40,400 or $20,200, respectively, for 2026). However, the cap is gradually reduced – but not below $10,000 ($5,000 for MFS filers) – if your modified adjusted gross income (MAGI) is above a certain amount.
TurboTax Tip:
If you pay next year’s property taxes this year (for example, in December), you might be able to deduct them on your tax return for the current tax year. The key is that the taxes must actually be “assessed” in the current year or earlier and paid in the current year. State or local law dictates when a property tax is assessed, which is generally when you become liable for the tax imposed.
2. Overtime deduction
If you work extra hours at work, you may be able to deduct some or all of your overtime pay. However, it's important to remember that the overtime deduction only applies to the “half” portion of the “time-and-a-half” pay you receive.
How much overtime pay can I deduct?
Eligible workers can deduct up to $12,500 of overtime pay earned during the year (up to $25,000 for married couples filing a joint return). But if your income is more than a certain amount, the deduction is gradually phased out – potentially to $0.
Is the overtime deduction permanent?
No. The overtime deduction is a temporary tax deduction. It only applies for the 2025 through 2028 tax years.
3. Tip deduction
Workers who receive tips on the job may be able to deduct some or all of their tip income on their federal income tax returns for the 2025 to 2028 tax years. However, the tip deduction is only available if you receive the tips through a job that "customarily and regularly" received tips before 2025.
How much tip income can I deduct?
If you qualify for the tip deduction, you can write off up to $25,000 of qualified tips received during the year. However, your deduction is gradually reduced – potentially to $0 – if your income is above a threshold amount.
Which jobs “customarily and regularly” received tips before 2025?
There are more than 70 jobs that the IRS has designated as occupations that “customarily and regularly” received tips before 2025, including waiters, bartenders, hair stylists, caddies, rideshare drivers, and the like. The IRS has a complete list, which is broken down into eight categories, on its website.
4. Student loan interest deduction
Student loan payments can be a huge drag on your finances for years. But did you know you might be able to deduct up to $2,500 of the interest you pay on those loans?
Who’s eligible for the student loan interest deduction?
The student loan interest deduction is only available to the person who is legally responsible for paying the student loan regardless of who actually pays the loan. So, if a parent or someone else pays your student loan for you, you can still claim the deduction if you’re the one who’s legally obligated to pay off the loan.
If you make too much money, your deduction will be phased-out. And you can’t claim the deduction if you’re married and file a separate tax return from your spouse. But at least you don’t have to itemize to deduct your student loan interest.
5. Home mortgage interest deduction
If you’re a homeowner, you likely have a monthly mortgage payment weighing you down. But at least you might be able to deduct the interest paid on the loan. (Mortgage points are generally deductible, too.)
What are the eligibility requirements for claiming the mortgage interest deduction?
First, you have to itemize your deductions to claim the mortgage interest deduction.
You also can only deduct mortgage interest to the extent the loan is used to buy, build, or substantially improve the home securing the loan.
There are also limits on the loan amount, depending on when the mortgage is taken out. Generally, you can only deduct home mortgage interest on up to:
- $750,000 of a mortgage taken out after December 15, 2017 ($375,000 if you’re Married Filing Separately)
- $1,000,000 of a mortgage taken out on or before December 15, 2017 ($500,000 if you’re Married Filing Separately)
6. IRA deduction
Even if you’re decades away from your golden years, it’s never too early to start saving for retirement. And if you’re middle-age or older…well, you don’t have much time left to save.
But the good news is that the tax code provides some help in the form of a tax deduction for contributions to a “traditional” Individual Retirement Account (IRA). And you don’t have to itemize to claim this deduction.
How much can you claim for the IRA deduction?
For the 2025 tax year, the maximum IRA deduction is $7,000 for most people ($7,500 for 2026). But if you're at least 50 years old, you can deduct an additional $1,000 of “catch-up” contributions to an IRA ($1,100 for 2026) – for a maximum of $8,000 ($8,600 for 2026). If you or your spouse are covered by a retirement plan at work, your IRA deduction might be gradually phased out (potentially to $0).
Can I deduct contributions to a Roth IRA?
No. You can't claim the deduction for contributions to a Roth IRA.
7. Self-employed SEP, SIMPLE, and qualified plans deduction
Self-employed people need to save for retirement, too. And there are special retirement plans designed just for them (and other small business owners), such as:
- Simplified Employee Pension (SEP) IRAs
- Savings Incentive Match Plan for Employees (SIMPLE) IRAs
- Solo 401(k) plans
The good news: Self-employed people can generally deduct contributions to these plans, up to each plan’s contribution limit.
8. Senior deduction
It's nice to have tax deductions that help you save for retirement, but it also helps to have a tax deduction that cuts your tax bill once you reach your golden years. That's where the senior deduction comes into play.
Who is eligible for the senior deduction?
To qualify for the Senior Deduction, you must:
- be 65 or older by the end of the tax year
- have a Social Security number that's valid for employment and issued before the due date of your return (including any tax filing extensions)
- file a joint return, if you’re married
How much is the senior deduction?
If you qualify, the senior deduction starts at a flat $6,000. If you’re married and both you and your spouse satisfy the eligibility requirements, both of you can claim the deduction on a joint return (for a total of $12,000).
However, the $6,000-per-person deduction is gradually reduced – potentially to $0 – if your MAGI is above a certain amount.
9. Medical and dental expense deduction
This is actually a deduction you usually don’t want to take, because if you’re eligible for the write-off it typically means you have a serious health problem. But if you’re ill, involved in a major car accident, or have some other condition or reason for getting large medical bills, you might be able to offset some of those costs with the medical expense deduction. (Dental bills are deductible, too.)
Are there limitations for the medical and dental expense deduction?
There are two important limitations on the deduction:
- You must itemize your deductions to claim medical and dental expenses (so you can’t claim the Standard Deduction).
- It’s only available for qualified expenses that exceed 7.5% of your adjusted gross income (AGI).
For example, assume you itemize, have $10,000 of eligible medical expenses, and have $100,000 of AGI. In that case, 7.5% of your AGI is $7,500 ($100,000 x .075 = $7,500). So, you can only use $2,500 of your medical costs as an itemized deduction, which is the amount that’s greater than $7,500 ($10,000 - $7,500 = $2,500).
10. Health insurance premiums deduction
And speaking of medical expenses, the best way to cover them is with health insurance. But if you have to cover the cost of health insurance by yourself, your premium payments can quickly blow up your budget.
Medical and dental insurance premiums that you pay yourself, rather than through payroll deductions for example, are generally eligible for the medical expense deduction. But people often can’t deduct them because of the 7.5%-of-AGI limit (see above)
However, if you’re self-employed and responsible for your own coverage, you might be able to deduct 100% of your health insurance premium costs without having to worry about the 7.5% restriction. You don’t have to itemize to claim the deduction for self-employed health insurance costs, either.
Plus, the deduction covers the cost of insuring your spouse and dependents, too.
11. HSA deduction
One way to cover your healthcare expenses is through a health savings account (HSA). These are tax-advantaged accounts used to save for future medical costs.
You can only put money in an HSA if you’re covered under a high-deductible health plan (HDHP). But if that’s the case, you can deduct contributions to your HSA, up to the annual contribution limit.
What is the annual contribution limit for your HSA?
For 2025, the HSA contribution limits are:
- $4,300 if you have self-only coverage under an HDHP
- $8,550 if you have family coverage under an HDHP
For 2026, the HSA contribution limits are:
- $4,400 if you have self-only coverage under an HDHP ($4,500 for 2027)
- $8,750 if you have family coverage under an HDHP ($9,000 for 2027)
If you’re at least 55 years old, you can contribute (and deduct) an additional $1,000 each year.
12. Alimony deduction
If you’ve been divorced or separated for a while, you might be able to deduct alimony paid to your former spouse. It’s not an itemized deduction, so you can also claim the Standard Deduction on the same tax return.
What are the requirements for claiming alimony as a write-off?
To claim alimony as write-off, the alimony must be paid according to a divorce or separation agreement from before 2019. However, the agreement can’t be modified later to provide that the alimony you pay isn’t included in your former spouse's taxable income.
You’ll also have to give the IRS your former spouse’s Social Security number so the IRS can check to make sure he or she is reporting the alimony as income.
13. Moving expenses deduction (military personnel only)
If you’re in the military, thank you for your service. And if you have unreimbursed expenses from PCSing (that’s making a “permanent change of station” for you civilians), you might be able to deduct your moving costs on your tax return if you’re on active duty (you don’t have to itemize to claim this deduction).
Who’s eligible to claim a deduction for moving expenses?
To claim the deduction for moving expenses, you must be on active duty and your move must be due to a military order. This can include moving from your home to your first post, moving from one permanent post to another, and moving from your last post to your home.
Can you claim vehicle expenses for a military move?
If you drive your own car from one post to another in 2025, you can deduct either:
- your actual expenses for gas, oil, and the like
- 21¢ per mile for moves in 2025 (for 2026, 20.5¢ per mile for the first half of the year, and 23.5¢ per mile for the second half of the year)
Parking fees and tolls are also deductible as long as they’re not reimbursed.
14. Car loan interest deduction
If you take out a loan to buy a new car, minivan, van, SUV, pickup truck, or motorcycle after 2024, you might be able to deduct the interest you pay on the loan. You don't need to itemize to claim the car loan interest deduction, either. But the deduction is only available for the 2025 through 2028 tax years, so you probably won't be able to deduct all the interest paid over the course of the loan.
How much car loan interest can you deduct?
Eligible taxpayers can deduct up to $10,000 of qualified car loan interest per year. If you’re paying off more than one car loan, you can combine the eligible interest from each of them to reach the $10,000 maximum.
However, the deduction is gradually reduced if your MAGI is above a certain threshold. In some cases, the deduction will be completely eliminated by this phase-out.
Which vehicles qualify for the car loan interest deduction?
To qualify for the car loan interest deduction, the vehicle you purchase with a qualifying loan must be:
- a new car, minivan, van, SUV, pickup truck, or motorcycle with a gross vehicle weight rating (GVWR) of less than 14,000 pounds
- assembled in the U.S.
- driven mostly for personal reasons
- built primarily for use on public streets, roads, and highways
15. Educator expense deduction
Many teachers dip into their own pocket to buy classroom supplies. Thanks to the educator expense deduction, at least they can recoup some of those costs. This deduction is an "above-the-line" deduction, so teachers and other eligible educators can take advantage of it regardless of whether they claim itemized deductions for the Standard Deduction.
How much can you deduct for educator expenses?
With the educator expense deduction, qualified K-12 educators can deduct up to $300 for qualified materials purchased in 2025 (up to $350 for 2026).
If two teachers are married and filing a joint return for the 2025 tax year, they can deduct up to $600 on their return, with no more than $300 in expenses for each person (up to a total of $700, or $350 per person, for 2026).
Is there an itemized deduction for educator expenses?
Starting with the 2026 tax year, teachers and certain other educators can claim an itemized deduction for instructional materials they buy, instead of claiming the above-the-line deduction for educator expenses. Unlike the above-the-line deduction, the itemized deduction:
- isn't limited to a certain dollar amount
- is available to interscholastic sports coaches and administrators
- can be claimed for nonathletic supplies for courses in health or physical education
16. Gambling loss deduction
Did you have a weekend in Las Vegas that didn’t go so well? Or perhaps you had a string of bad luck at the track. If you’re a gambler, you might be able to deduct the cost of your bad bets (including the cost of non-winning bingo, lottery, and raffle tickets).
Are there limits on how much you can deduct in gambling losses?
For 2025, you are limited to deducting no more than your winnings. So, if you won $1,000 but lost $2,000, your deduction is limited to $1,000.
Beginning with the 2026 tax year, you may be able to deduct the smaller of:
- 90% of your gambling losses (up to 100% before 2026)
- gambling winnings reported as taxable income on your tax return
For example, suppose you had a total of $5,000 of gambling losses in 2026. If you also had $6,000 in gambling winnings during the year, you can deduct $4,500 of your losses (which is 90% of your $5,000 of losses). But if you only had $1,000 in gambling winnings, you can only deduct $1,000 of your losses (since you can't deduct more than your winnings).
Do you have to itemize to write off gambling losses?
Yes, you have to itemize to deduct gambling losses.
17. Charitable gift deduction
Did you know you can deduct money or goods given to charities, churches, schools, and other tax-exempt organizations? You have to itemize to claim the charitable gift deduction, and there are various income-based thresholds and restrictions (for instance, cash contributions can’t be more than 60% of your AGI), but it’s a great tax break for charitably-minded people.
Plus, starting with the 2026 tax year, non-itemizers can deduct up to $1,000 for cash donations to charities, churches, schools, and other eligible organizations (up to $2,000 for joint filers).
Can volunteers deduct out-of-pocket expenses?
If you itemize and do volunteer work for a charity, your unreimbursed out-of-pocket expenses are deductible if they’re:
- directly connected with your volunteer services
- incurred only because of your volunteer services
- not personal, living, or family expenses
For example, if you make cupcakes for a charity fundraiser, you can deduct the cost of the ingredients you used to bake them.
If you drive your own car as a volunteer, you can deduct related expenses, too. You can either deduct:
- your actual expenses for gas, oil, and the like
- 14¢ per mile (the standard mileage rate)
You can also deduct tolls and parking expenses.
18. Casualty and theft loss deduction
Another itemized deduction is available for the value of personal property lost or stolen during a federally or state declared natural disaster, such as a hurricane, flood, earthquake, and the like (only federally declared disasters qualified before 2026).
How much can you write off for casualty or theft losses related to a federally declared natural disaster?
The casualty and theft loss deduction is limited. You can only deduct a disaster loss to the extent that both:
- The amount of each separate loss is more than $100.
- The total amount of all losses during the year (reduced by the $100 limit above) is more than 10% of your AGI.
19. Jury duty pay deduction
If you receive payment for serving on a jury, you have to pay tax on that money. Plus, if you miss work because you’re called for jury duty, your employer still might pay your regular salary…which is also taxed.
However, if you’re required to hand over your jury duty pay to your employer because you still received your regular wages for the time you missed at work, you can deduct the jury pay on your tax return. And you don’t have to itemize to take this deduction.
20. Home office deduction
It wasn’t very common before the pandemic, but a lot of people work from home now. However, remote employees can’t deduct expenses related to their home office – but self-employed people can.
What qualifies for the home office deduction?
You can only deduct home office expenses if part of your home is "regularly and exclusively" used as your principal place of business. If so, you can deduct many of the costs for that part of your home, including those for:
- insurance
- utilities
- rent
- mortgage interest
- property taxes
- repairs
- maintenance
How do you calculate the home office deduction?
Self-employed people can calculate the home office deduction in one of two ways. You can either deduct:
- the actual expenses related to your home office (that is, your total home expenses multiplied by a percentage representing the portion of your home used for business)
- $5 for every square foot of your home office (up to 300 sq. ft.)
The deduction is claimed as a business expense on Schedule C (Form 1040), so you don’t have to itemize to take advantage of this write-off.
21. Business deductions for the self-employed
Self-employed people also get to deduct business expenses. These deductions can reduce your self-employment income and, therefore, reduce your self-employment tax as well as your income tax.
For business expenses to be deductible, they need to be both ordinary and necessary. An expense is “ordinary” if it’s common and accepted in your field of business, while a “necessary” expense is one that’s helpful and appropriate for your business.
Examples of common business expenses include costs for:
- advertising
- cars and trucks
- commissions and fees
- depreciation
- employee benefit programs
- insurance
- interest
- mortgages
- legal and professional services
- office space
- rent
- repairs and maintenance
- supplies
- taxes and licenses
- travel
- utilities
- wages
The cost of goods sold are also deductible.
Do you have to itemize to claim deductions for business expenses?
No. As with the home office deduction, business expenses are reported on Schedule C – so you don’t have to itemize to claim them.
22. Qualified business income (QBI) deduction
Certain business owners (including self-employed people) can claim the qualified business income deduction, which can be worth up to 20% of your “qualified business income,” or QBI for short. Your QBI is generally the net combined total of income, gain, deduction, and loss from any qualified trade or business.
Starting with the 2026 tax year, there's a minimum deduction of $400 for qualified taxpayers who have at least $1,000 of qualified business income from one or more businesses in which they materially participate (the $400 and $1,000 amounts will be adjusted annually to account for inflation after 2026).
(Note: The QBI deduction is sometimes called the “Section 199A deduction” after the tax code section authorizing it.)
Is there an income limit for the QBI deduction?
Yes, the deduction is gradually phased-out (possibly to $0) for certain service-oriented business owners (for example, lawyers, doctors, accountants, financial planners, and more) if their business income exceeds a certain amount. For 2025, the phase-out begins when taxable income before the deduction is greater than:
- $394,600 for joint filers ($403,500 for 2026)
- $197,300 for married people filing a separate return ($201,775 for 2026)
- $197,300 for everyone else ($201,750 for 2026)
Do you have to itemize to claim the QBI deduction?
You don’t have to itemize to claim the qualified business income deduction.
23. Self-employment tax deduction
The bad news about being self-employed: You have to pay 15.3% of your income for Social Security and Medicare taxes. This extra burden – known as the self-employment tax – is equal to the combined amount ordinarily paid by both employees and employers.
But there's one small consolation – you can deduct 50% of the self-employment tax (i.e., the 7.65% employer portion) from your taxable income.
Do you have to itemize to claim the self-employment tax deduction?
The deduction applies whether you take the Standard Deduction or itemize.
Frequently asked questions about tax deductions
The tax deduction examples above will help you save money if you’re eligible to claim them. But people still often have general questions about tax deductions. For instance, how do they compare to other tax breaks? What documentation is needed to claim a tax deduction? Can deductions help you save money in other ways?
Here are answers to some frequently asked questions about tax deductions. Hopefully, they’ll help you understand these tax breaks a little better.
Q1: What’s the difference between a tax deduction and a tax credit?
Both tax deductions and tax credits provide tax relief, but their methods and impacts differ considerably.
Tax deductions lower your taxable income. In other words, they reduce the base amount from which your taxes are calculated. The value of a tax deduction depends on the tax bracket you’re in. For example, if you qualify for a $500 tax deduction and are in the 22% bracket, the deduction results in $110 of tax savings ($500 x .22 = $110).
Tax credits, on the other hand, reduce the taxes you owe on a dollar-for-dollar basis. So, if you qualify for a $1,000 tax credit, it generally means you can subtract the full $1,000 from your tax bill. This actually makes tax credits more valuable than tax deductions.
However, it's important to note that there are two distinct types of credits: refundable and nonrefundable tax credits. Refundable tax credits can provide a tax refund if the value of the credit is greater than your total tax liability. Nonrefundable tax credits can reduce your tax liability to zero, but they won’t generate a refund if the credit exceeds the amount owed. So, obviously, refundable credits are better than nonrefundable credits.
Q2: What’s the difference between a tax deduction and a tax exclusion?
Both tax deductions and tax exclusions reduce the amount of income that’s taxed, but there’s an important difference.
With a tax deduction, you subtract the write-off from income that’s reported on your tax return. However, with a tax exclusion, you don’t even need to report excluded income on your tax return in the first place. For example, payouts from a life insurance policy aren't included in gross income and don't have to be reported on your return.
Q3: What deductions can I claim without receipts?
There are a handful of tax deductions that don’t necessarily require receipts. The Standard Deduction is one of them. It’s a set amount that’s mostly based on your filing status.
The home office deduction is another. If you simply claim $5 for every square foot of your home office, you don’t need to keep receipts for insurance, rent, utilities, repair cost, or any of the other actual expenses for your workspace.
Likewise, if you’re deducting expenses related to the use of your car or truck, you can use the standard mileage rate without having to keep receipts for gas, oil, repairs, and other actual costs to drive and maintain your vehicle. In addition to the standard mileage rates listed above for volunteer service and military moving expenses in 2025, you can claim:
- 70¢ per mile for the business use of your vehicle (72.5¢ per mile for the first half of 2026, and 76¢ per mile for the second half of 2026)
- 21¢ per mile for medical-related travel (20.5¢ for the first half of 2026, and 23.5¢ per mile for the second half of 2026)
The IRS also provides tables you can use to calculate the sales tax deduction if you don’t have receipts for all your purchases during the year.
In some cases, you’ll get a tax form or other notification from a third party providing the information you need to claim a tax deduction without keeping any receipts yourself. You’ll see this with deductions for IRA and HSA contributions, mortgage and student loan interest, and property taxes.
You might have other documentation that can be used in lieu of receipts. For instance, a divorce decree showing the amount of alimony you must pay each month.
No receipt is required for the self-employment tax deduction, either. You just need to calculate 50% of your self-employment tax.
However, as a general practice, you want to keep any receipts related to a tax deduction (or other tax break) you plan to take. That way, if the IRS challenges a deduction, you have the documentation needed to back up your claim.
Q4: What’s the difference between itemized deductions and other tax deductions?
Itemized deductions, which are reported on Schedule A (Form 1040), can’t be taken if you claim the Standard Deduction. All the other deductions can be taken along with the Standard Deduction.
How much is the Standard Deduction?
The basic Standard Deduction depends on your filing status. For the 2025 tax year, the basic Standard Deduction amounts are:
- $15,750 for Single filers and those filing Married Filing Separately returns ($16,100 for 2026)
- $23,625 for Head of Household filers ($24,150 for 2026)
- $31,500 for those filing Married Filing Jointly or Qualifying Surviving Spouse ($32,200 for 2026)
For dependents, the Standard Deduction for 2025 is generally limited to the greater of:
- $1,350 (same for 2026)
- earned income plus $450, up to a maximum equal to the Standard Deduction (same for 2026)
An additional Standard Deduction is available to people who are at least 65 years old or blind. For 2025, the additional amounts are:
- $1,600 for Married Filing Jointly, Married Filing Separately, and Qualifying Surviving Spouse filers ($1,650 for 2026)
- $2,000 for Single and Head of Household filers ($2,050 for 2026)
Should I itemize or claim the Standard Deduction?
You can either claim the Standard Deduction or itemized deductions – but you can’t do both. But at least you’re typically free to pick the option that works best for you.
Whether you’re better off itemizing or taking the Standard Deduction depends on your own financial situation. However, about 90% of all taxpayers end up claiming the Standard Deduction each year. Those who itemize tend to be higher-income taxpayers, which makes sense since they typically pay more in state and local taxes, have higher mortgage interest payments, and give more to charity.
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