The tax deductions you can claim on a federal return fall into two tracks that work alongside each other. First, you choose between the standard deduction (a flat amount tied to your filing status) and itemizing (adding up qualifying expenses like mortgage interest, state and local taxes, medical bills, and charitable gifts). Whichever gives you the larger write-off wins. Separately, a set of “above-the-line” deductions, including student loan interest, HSA and traditional IRA contributions, and self-employment costs, are available whether you take the standard deduction or itemize. For the 2026 tax year, the standard deduction alone shields $16,100 for single filers and $32,200 for married couples filing jointly.1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
The Standard Deduction Most Filers Take
The standard deduction requires no documentation and, for most people, comes out larger than the expenses they could itemize. For 2026:1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
- Single or married filing separately: $16,100
- Married filing jointly or surviving spouse: $32,200
- Head of household: $24,150
If you’re 65 or older or legally blind, you get an additional amount on top of the base figure. For 2026, single and head-of-household filers add roughly $2,050 per qualifying condition; married filers add about $1,650 per person per condition. The One, Big, Beautiful Bill Act layered a further enhanced senior deduction on top of that for tax years 2025 through 2028, worth an extra $6,000 per eligible person, or $12,000 for a joint return where both spouses qualify.2Internal Revenue Service. 2026 Filing Season Updates and Resources for Seniors A couple who are both over 65 can approach a combined standard deduction near $47,500 in 2026, which is enough to make itemizing pointless for many retirees.
Itemizing usually pays off only when large mortgage interest and state tax payments push your total above the standard amount. Homeowners in high-tax states are the most common itemizers.
Deductions You Can Claim Without Itemizing
Above-the-line deductions come off your income before the standard-versus-itemized choice even happens. Lowering your adjusted gross income this way can also open up other tax benefits that phase out at higher incomes.
Student Loan Interest
You can deduct up to $2,500 of interest paid on qualified education loans each year, whether the loan is federal or private, as long as you’re legally obligated to make the payments.3Office of the Law Revision Counsel. 26 USC 221 – Interest on Education Loans For 2026, single filers begin losing the deduction around $85,000 of modified AGI and lose it entirely at $100,000. Joint filers phase out between roughly $175,000 and $205,000. Married filing separately cannot claim it at all.
Health Savings Account Contributions
If you have a high-deductible health plan, HSA contributions are deductible up to $4,400 for self-only coverage or $8,750 for family coverage in 2026.4Internal Revenue Service. IRS Notice 26-05 – HSA Inflation Adjustments for 2026 Pre-tax contributions taken from your paycheck by an employer are already excluded from your income and don’t get deducted again. Contributions you make outside payroll are deductible on Schedule 1.
Traditional IRA Contributions
Traditional IRA contributions are deductible up to $7,500 for 2026, or $8,600 if you’re age 50 or older.5Internal Revenue Service. Retirement Topics – IRA Contribution Limits There’s a catch. If you or your spouse is covered by a workplace retirement plan, the deduction phases out above certain income thresholds that depend on filing status and which spouse has the plan. If neither of you is covered at work, the full deduction is available at any income.
Self-Employed Health Insurance
Self-employed individuals can deduct 100% of health, dental, and vision insurance premiums for themselves, their spouse, and dependents.6Office of the Law Revision Counsel. 26 USC 162 – Trade or Business Expenses The plan must be established under your business, the deduction can’t exceed your net self-employment income from that business, and you can’t claim it for any month you were eligible for a subsidized employer plan through a spouse or other job.
Half of Self-Employment Tax
If you pay self-employment tax (both the employer and employee share of Social Security and Medicare), you deduct the employer-equivalent half from your income automatically through Schedule SE and Schedule 1.7Office of the Law Revision Counsel. 26 USC 164 – Taxes
Itemized Deductions Worth Knowing
State, Local, and Property Taxes (SALT)
The SALT deduction changed significantly for 2025 and beyond. The $10,000 cap that applied from 2018 through 2024 is gone. For 2026, you can deduct up to $40,400 in combined state and local taxes ($20,200 for married filing separately).7Office of the Law Revision Counsel. 26 USC 164 – Taxes The deduction covers property taxes plus either state income taxes or state sales taxes, whichever is larger for you. High earners see the cap phase down once modified AGI exceeds roughly $505,000, eventually flooring at $10,000. The expanded cap is scheduled to last through 2029 before reverting to $10,000 in 2030.
Mortgage Interest
Interest on home mortgage debt is deductible up to $750,000 of acquisition debt ($375,000 for married filing separately) when you itemize.8Office of the Law Revision Counsel. 26 USC 163 – Interest That limit is now permanent under the One, Big, Beautiful Bill Act. Loans taken out before December 15, 2017 keep the older $1,000,000 limit. Points paid at closing are also deductible, either in full during the year of purchase or spread over the life of the loan on a refinance. Your lender reports the amounts on Form 1098.9Internal Revenue Service. Instructions for Form 1098
Medical and Dental Expenses
Unreimbursed medical and dental expenses are deductible only to the extent they exceed 7.5% of your adjusted gross income.10Office of the Law Revision Counsel. 26 USC 213 – Medical, Dental, Etc., Expenses At $80,000 of AGI, only spending above $6,000 counts. Qualifying costs include hospital stays, surgeries, prescription drugs, dental work, vision care, mental health treatment, and transportation to medical appointments. Out-of-pocket premiums paid with after-tax dollars count too. Cosmetic procedures generally don’t qualify unless they address a deformity from illness, injury, or a congenital condition.
Charitable Contributions
Donations to qualified nonprofits, religious organizations, and government entities are deductible when you itemize.11Office of the Law Revision Counsel. 26 USC 170 – Charitable, Etc., Contributions and Gifts Cash donations to public charities can be deducted up to 60% of AGI. Gifts to individuals, political campaigns, and organizations without tax-exempt status don’t qualify.
Non-cash donations are valued at fair market value at the time of the gift, and any item or group of similar items worth more than $5,000 needs a qualified appraisal.12Internal Revenue Service. Instructions for Form 8283 Donated clothing and household goods must be in good used condition or better. Volunteer mileage driven for charity is valued at a flat 14 cents per mile. For any single donation of $250 or more, you need a written acknowledgment from the organization before you file.
Home Office and Other Self-Employment Deductions
Self-employed workers and independent contractors can write off the business-use portion of their rent, mortgage interest, utilities, and insurance if part of the home is used exclusively and regularly as the main place of business.13Office of the Law Revision Counsel. 26 USC 280A – Disallowance of Certain Expenses in Connection With Business Use of Home “Exclusively” is strict: a room that doubles as a guest room or play area doesn’t qualify. A simplified option lets you deduct $5 per square foot up to 300 square feet ($1,500 maximum) without tracking actual expenses.
If you’re a W-2 employee working from home, even full time, you cannot claim a home office deduction. The write-off is limited to self-employed filers and independent contractors.
Educator Expenses
K-12 teachers, instructors, counselors, principals, and aides who work at least 900 hours during the school year can deduct unreimbursed classroom supplies.14Office of the Law Revision Counsel. 26 USC 62 – Adjusted Gross Income Defined Through 2025 the deduction was above the line and capped at $300. Starting in 2026, the One, Big, Beautiful Bill Act removed the dollar cap but moved the deduction to Schedule A. An educator who spends $1,000 on books and supplies and itemizes in 2026 can deduct the full amount; an educator who takes the standard deduction gets nothing from this provision.
Deductions You Can No Longer Claim
Several older deductions are off the table. Unreimbursed employee business expenses, tax preparation fees, and investment advisory fees, once deductible as miscellaneous itemized deductions subject to a 2% of AGI floor, were suspended in 2018 by the Tax Cuts and Jobs Act. The One, Big, Beautiful Bill Act made that suspension permanent.15Office of the Law Revision Counsel. 26 USC 67 – Two-Percent Floor on Certain Miscellaneous Itemized Deductions Moving expenses are deductible only for active-duty military members. Personal exemptions remain at zero. If your source predates 2018, verify the deduction still exists before claiming it.
Documentation and Penalties
Every deduction needs backup. Mortgage interest arrives on Form 1098; student loan interest on Form 1098-E.9Internal Revenue Service. Instructions for Form 1098 For medical costs, keep receipts showing date, provider, and amount. For charitable gifts of $250 or more, keep the written acknowledgment from the organization; for non-cash gifts over $5,000, keep the qualified appraisal and attach Form 8283.12Internal Revenue Service. Instructions for Form 8283 The IRS recommends holding records for at least three years, or six if you underreport income by more than 25%.16Internal Revenue Service. How Long Should I Keep Records
Claiming deductions you don’t qualify for costs more than the tax you should have paid. The IRS imposes a 20% accuracy-related penalty on underpaid tax tied to a substantial understatement or negligence, and 40% for widely overstated donated property values.17Office of the Law Revision Counsel. 26 USC 6662 – Imposition of Accuracy-Related Penalty on Underpayments Fraud carries a 75% penalty on the fraudulent portion of the underpayment, and there is no time limit for auditing a fraudulent return.18Office of the Law Revision Counsel. 26 USC 6663 – Imposition of Fraud Penalty Honest mistakes with reasonable cause are treated differently from fabricated deductions, but not knowing the rule isn’t a defense for negligence.