Tax Deductions You Might Be Missing

Millions of Americans overpay on taxes because they don't claim all deductions they're entitled to. Here are the most commonly missed ones.

Above-the-Line Deductions

These reduce AGI even with the standard deduction:

1. Student Loan Interest

Up to $2,500 deductible. Income limits: $75K single, $155K married.

2. HSA Contributions

Triple tax-advantaged: deductible in, grow tax-free, medical withdrawals tax-free. $4,150 single, $8,300 family (2026).

3. Self-Employment Tax

Deduct 50% of self-employment tax (the employer-equivalent portion).

4. IRA Contributions

Up to $7,000 ($8,000 if 50+) may be deductible depending on income.

Itemized Deductions Worth Checking

Standard deduction 2026: $14,600 (single), $29,200 (married). Itemize if yours exceed this.

5. SALT

Up to $10,000 in state/local income and property taxes.

6. Mortgage Interest

Interest on up to $750K of mortgage debt — often the largest itemized deduction.

7. Charitable Donations

Cash and property to qualified charities. Don't forget non-cash items.

8. Medical Expenses

Unreimbursed expenses exceeding 7.5% of AGI — including insurance, dental, mileage to appointments.

Credits vs. Deductions

Credits reduce tax dollar-for-dollar — more valuable than deductions:

• Child Tax Credit: $2,000 per child
• EITC: Up to $7,430
• American Opportunity: Up to $2,500 per student
• Saver's Credit: Up to $1,000 for retirement contributions
• Energy Credits: Up to $3,200 for home improvements

The Bottom Line

Review every deduction and credit before filing. Use our tax calculator to estimate impact of different deduction amounts.