What tax deductions can I take without itemizing?

You can claim "above-the-line" deductions even if you take the standard deduction. These include contributions to a Traditional IRA, Health Savings Account (HSA) contributions, student loan interest, self-employed health insurance premiums, one-half of self-employment taxes, and educator expenses.

Is mortgage interest still deductible in 2026?

Yes, mortgage interest remains deductible for 2026 as an itemized deduction. However, it's limited to interest paid on up to $750,000 of qualified home acquisition debt for mortgages taken out after December 15, 2017. Mortgages taken out on or before that date have a higher limit of $1 million.

How much can I deduct for charitable donations?

For cash contributions to qualified charities, you can generally deduct up to 60% of your adjusted gross income (AGI) as an itemized deduction. For non-cash contributions, the limit is typically 50% of your AGI for ordinary income property and 30% of your AGI for capital gain property. You must have proper documentation, such as receipts or written acknowledgments.

Can I deduct home office expenses if I'm an employee working from home?

No, if you are an employee working from home, you generally cannot deduct home office expenses. The Tax Cuts and Jobs Act (TCJA) of 2017 eliminated the deduction for unreimbursed employee business expenses for tax years 2018 through 2025, and this is expected to continue for 2026. This deduction is primarily for self-employed individuals.

What is the difference between a tax deduction and a tax credit?

A tax deduction reduces your taxable income, lowering the amount of income subject to tax. For example, a $1,000 deduction for someone in the 22% tax bracket saves $220. A tax credit, on the other hand, directly reduces the amount of tax you owe, dollar for dollar. A $1,000 tax credit saves you $1,000, regardless of your tax bracket.

Can I deduct medical expenses for my pets?

No, generally you cannot deduct medical expenses for your pets. The IRS defines qualified medical expenses as those incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body, for yourself, your spouse, or your dependents. Pet care expenses are considered personal expenses.

Are investment advisory fees deductible?

No, for tax years 2018 through 2025 (and expected to continue for 2026), investment advisory fees are no longer deductible for individual investors. These were previously deductible as miscellaneous itemized deductions subject to a 2% AGI floor, but that category of deductions was eliminated by the Tax Cuts and Jobs Act (TCJA).

Tax Deductions Guide 2026: Lower Your Tax Bill | One…