Updated: November 2025 — The IRS has not yet published its 2025 filing updates. This page will be refreshed as soon as new guidance is released.
Doing taxes probably doesn't rank high on your list of fun things to do, but we all have to think about it once April rolls around. Claiming tax deductions can shrink your tax bill and help you hold on to more money.
What can you write off on taxes? Our tax deductions list covers some of the most valuable tax breaks you might be eligible to claim.
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What are tax deductions?
Your tax withholding, or the number you put on your W-2, can influence whether you owe taxes when you file or get a refund. The tax deductions you claim also play a part.
A tax deduction is an amount you subtract from your taxable income. The IRS allows you to claim deductions for certain expenses or losses on your federal return. (see disclosure 1)
Now, what are tax deductions designed to do for you? In simple terms, they save you money. When you lower your income with deductions, you reduce your tax.
Deductions are not the same as tax credits. A tax credit reduces your tax liability or the amount you owe in tax on a dollar-for-dollar basis. You can claim tax deductions and tax credits on your return, but not for the same expenses. (see disclosure 1)
Top tax deductions and tax breaks
This tax deductions list includes plenty of deductions and a few credits as well. Talking to an accountant or tax professional can help you determine which deductions or credits you might be eligible for when it's time to file your return.
1. Student loan interest deduction
You can deduct up to $2,500 worth of qualified student loan payments in 2026. The deduction phases out for single filers with a MAGI between $85,000 and $100,000, and for joint filers with a MAGI between $175,000 and $205,000. (see disclosure 2)
A student loan can qualify for this deduction if the loan is:
Applicable to you, your spouse, or an individual who qualified as your dependent when you took out the loan
Pertains to education received during an academic term by an eligible student
Paid off within a reasonable time frame following the loan acquisition
The organization you submit loan payments to should give you a 1098-E Form if you pay more than $600 worth of interest. (see disclosure 3)
2. Charitable donation deduction
The IRS allows you to deduct up to 60% of your annual adjusted gross income (AGI) in cash charitable donations to qualifying public charities, a limit the OBBBA made permanent. (see disclosure 4) Starting with the 2026 tax year, itemizers must also clear a new floor: only contributions exceeding 0.5% of your AGI count toward the deduction. (see disclosure 4)
Donations to a 501(c)(3) organization or similar entity can be cash or noncash contributions. For example, if you donate a car to a local charity, you could write off the value of that donation. Funds spent on driving, parking, and tolls related to volunteer work can also be tax write-offs.
3. Medical expenses deduction
You may be able to deduct medical and dental expenses on your tax return to the extent that those expenses exceed 7.5% of your adjusted gross income. (see disclosure 5)
This deduction applies only to expenses not covered by insurance or otherwise reimbursed to you. You can claim the deduction for expenses paid for yourself, your spouse, or an eligible dependent.
4. Deduction for state and local taxes
If you make payments for state and local taxes (SALT), you can generally deduct the following on your tax return:
Local income tax: A tax imposed by local jurisdictions on an individual's income earned within a specific locality.
State income tax: A tax levied by state governments on the income earned by individuals and businesses within the state's boundaries.
Sales tax: A consumption tax imposed on the sale of goods and services, typically calculated as a percentage of the purchase price.
You'll need to itemize to claim SALT deductions. Thanks to the OBBBA, the cap has jumped significantly from the old $10,000 limit: it's $40,400 for 2026, rising another 1% to roughly $40,800 for 2027. (see disclosure 6) The higher cap phases down for taxpayers with MAGI above $505,000 ($252,500 if married filing separately), but never drops below the original $10,000 floor. (see disclosure 6)
5. Mortgage interest deduction
If you own a home, you can deduct mortgage interest on the first $750,000 in mortgage debt ($375,000 if you're married and file separate returns). The OBBBA made this limit permanent, so it applies in 2026, 2027, and beyond. Interest on home equity loans or home equity lines of credit (HELOC) is also deductible if the proceeds from either one are used exclusively to buy, build, or substantially improve the home that secures the loan. (see disclosure 7)
6. Gambling loss deduction
If you gambled and lost during the year, you can write those losses off on your taxes — but the rules just got tighter. Starting with the 2026 tax year, the OBBBA limits your deduction to 90% of your gambling losses, and that amount still can't exceed the gambling income you report on your return. (Previously, you could deduct 100% of your losses up to your winnings.) You'll need to keep detailed records showing your winnings and losses for the year. (see disclosure 8)
7. IRA contributions deduction
Saving for retirement could help you score an additional tax break. Here are the rules for deducting contributions to an individual retirement account:
Traditional IRA (single): If you're covered by a workplace retirement plan and earn under $81,000, you can deduct up to the full contribution limit of $7,500. You qualify for a partial deduction if you earn more than $81,000 but less than $91,000. Those who earn over $91,000 do not qualify for this tax deduction. (see disclosure 9)
Traditional IRA (joint): You can deduct up to the full contribution limit of $7,500 if you're married filing jointly with a household income of $129,000 or less. You qualify for a partial deduction if you earn more than $129,000 but less than $149,000. (see disclosure 9) Household incomes over $149,000 do not qualify for the tax deduction.
If you have a Roth IRA, your contributions are not tax-deductible. But you get the benefit of a tax break in retirement since qualified withdrawals are tax-free.
8. 401(k) contributions deduction
Contributions made to a 401(k) at work are technically not tax-deductible on your return. However, you still get a tax break for contributing to your plan since any amount you put in reduces your taxable income for the year. For 2026, the maximum you can contribute to your 401(k) is $24,500. (see disclosure 10)
9. Self-employment expenses deduction
If you're self-employed as a freelancer or independent contractor, you can deduct up to 50% of what you pay in self-employment taxes.
The current self-employment tax rate is 15.3% and breaks down like this:
Social Security: 12.4% of your payments go toward Social Security services.
Medicare: 2.9% of your self-employment tax payments go toward Medicare.
If you earn more than $400 as a self-employed individual, you must file Form 1040 when filing your federal tax return. (see disclosure 11)
10. Home office deduction
If your home is your principal place of business and you have a dedicated area for regular and exclusive home office use, you could claim this deduction on your tax return.
You can either claim the deduction based on your actual expenses or choose the simplified deduction of $5 per square foot. Under the simplified method, the maximum deduction is $1,500. (see disclosure 12)
11. Educator expense deduction
Eligible educators can now deduct up to $350 (up from $300), or $700 if married filing jointly and both spouses are eligible educators, for unreimbursed business expenses — a bump that took effect for the 2026 tax year. Qualified expenses include things you pay for out of pocket that are necessary for your job, such as classroom materials or computer equipment. (see disclosure 13)
12. Health savings account contributions deduction
To qualify for the health savings account (HSA) deduction, you must be enrolled in a high-deductible health care plan. Single filers can deduct up to the maximum contribution limit of $4,400, while joint filers can deduct up to the maximum household limit of $8,750. (see disclosure 14)
13. Child tax credit
The Child Tax Credit is a credit for the parents or legal guardians of an eligible dependent child. The OBBBA permanently raised the maximum credit to $2,200 per child for 2026, with up to $1,700 of that refundable. Single tax filers with a MAGI of $200,000 or less and married couples filing jointly with a MAGI of $400,000 or less can claim the full credit. You may be able to claim a partial credit if your income exceeds those thresholds. (see disclosure 15)
14. Child and dependent care credit
The Child and Dependent Care Credit helps offset the cost of child or dependent care for working parents and caregivers. Thanks to the OBBBA, starting with the 2026 tax year the maximum credit rate jumps from 35% to 50% of qualifying expenses (depending on income). The maximum eligible expense remains $3,000 for one qualifying person and $6,000 for two or more. (see disclosure 16)
15. American Opportunity tax credit
The American Opportunity Tax Credit (AOTC) is a credit for qualified higher education expenses paid for students in their first four years of college. The maximum credit amount is $2,500 per eligible student. Students must be enrolled at least half-time to qualify. (see disclosure 17)
16. Lifetime Learning credit
The Lifetime Learning Credit (LLC) is also an education tax credit, but it applies to all years of enrollment, including graduate or professional studies. There's no limit on the number of years you can claim the credit, which maxes out at $2,000 per year. Note that you can't claim the AOTC and the LLC for the same expenses. (see disclosure 18)
17. Adoption credit
The Adoption credit helps parents recoup some of the costs of adopting a child, including:
Reasonable and necessary adoption fees
Court costs and attorney fees
Traveling expenses (including amounts spent for meals and lodging while away from home)
Expenses directly related to and for the principal purpose of the legal adoption of an eligible child
For 2026, the maximum credit is $17,670 per eligible child, and a portion — up to $5,000 — is now refundable for the first time. (see disclosure 19)
18. Earned income tax credit
The Earned Income Tax Credit (EITC) is a credit for low- and moderate-income households. For 2026, the maximum credit is $664 with no qualifying children, $4,427 with one child, $7,316 with two children, and $8,231 with three or more children. The credit phases out at higher MAGI levels, with thresholds around $200,000 for single filers and $400,000 for joint filers tracking closely with the Child Tax Credit phase-out. (see disclosure 20)
19. Saver's credit
The Retirement Saver's Credit is a tax credit for people who contribute to an IRA or another eligible retirement plan. Depending on your adjusted gross income, the amount of the credit is 10%, 20%, or 50% of up to $2,000 in contributions ($4,000 for joint filers) to:
Traditional or Roth IRA contributions
Elective salary deferrals to a 401(k), 403(b), or similar plan
After-tax contributions to a federal Thrift Savings Plan, 403(b), or similar plan
Contributions to an ABLE account that you're the beneficiary of
For 2026, the income limit for the 10% credit tier is $40,250 for single filers, $60,375 for heads of household, and $80,500 for joint filers. (see disclosure 21)
20. Solar tax credit — ending for 2026
Heads up: the Residential Clean Energy Credit (the 30% credit for solar panels, solar water heaters, and battery storage) was terminated by the OBBBA for any expenditures made after Dec. 31, 2025. If you were counting on this credit, it's no longer available for new projects placed in service in 2026 or beyond. (see disclosure 22)
21. Energy efficient home improvement tax credit — also ended
Similarly, the Energy Efficient Home Improvement Credit (covering items like heat pumps, insulation, and energy-efficient windows and doors) was terminated for any property placed in service after December 31, 2025, under the OBBBA. This credit is no longer available starting with the 2026 tax year. (see disclosure 22)
22. Electric vehicle tax credit — no longer available
The federal EV tax credit (covering both new and used clean vehicles, worth up to $7,500) was also terminated by the OBBBA. The credit is not allowed for any vehicle acquired after Sept. 30, 2025 — so if you're buying an EV in 2026 or 2027, this credit is off the table. (see disclosure 23)
How to claim tax deductions
There are two ways to deduct expenses on your tax return. You can claim a standard deduction or itemize. Let's look at how each claiming method works.
The standard deduction is a fixed dollar amount set by the government that you can deduct from your adjusted gross income (AGI) without documentation of individual expenses. Your deduction is based on your filing status.
Here are the standard deduction amounts for 2026 (and projected 2027 figures, pending final IRS confirmation):
Single filers: $16,100 (2026); ~$16,600 (2027, projected)
Married couples filing jointly: $32,200 (2026); ~$33,200 (2027, projected)
Heads of household: $24,150 (2026); ~$24,950 (2027, projected) (see disclosure 19)
Itemized deductions allow you to deduct specific qualifying expenses individually. When choosing to file an itemized tax return, remember that:
You must maintain detailed records and receipts for each expense you claim.
Itemizing deductions is often more beneficial if you have large deductible expenses that exceed the standard deduction — and with the SALT cap now at $40,400+, more taxpayers in high-tax states may find itemizing worthwhile again.
You can choose between standard and itemized deductions, but you can't use both methods in the same tax year.
Don't miss out on lowering your tax bill
Tax deductions save you money, so it makes sense to claim all the ones that you're eligible for. Just remember that if you claim a deduction (or a tax credit) you'll need documentation to prove it in case the IRS comes knocking with an audit.
Looking forward to your tax refund? Here's how long it takes to get a tax refund and what to do if your refund deposits into the wrong account.