Tax Deductions and Credits – United States

Flat deduction subtracted from gross income before tax is calculated. No documentation required. Most taxpayers benefit more from standard deduction than itemizing.

Double the single filer amount. Available to legally married couples filing together. Also applies to qualifying surviving spouses.

For unmarried individuals who pay more than half the cost of maintaining a home for a qualifying dependent.

$2,050 extra for single filers 65+, $1,650 for married filers 65+. Per qualifying taxpayer. Plus a new $6,000 senior deduction (phases out at higher income).

Deduct state income tax or sales tax plus property taxes, capped at $10,000 total ($5,000 married filing separately). SALT cap made permanent by OBBBA.

Interest on mortgage debt up to $750,000 ($375,000 married filing separately) for primary residence and one second home. Made permanent by OBBBA.

Cash donations to qualified charities deductible up to 60% of adjusted gross income. In 2026, non-itemizers can deduct up to $1,000 ($2,000 joint) in cash donations.

Unreimbursed medical and dental expenses exceeding 7.5% of adjusted gross income. Includes insurance premiums, treatments, prescriptions, medical travel.

Traditional 401(k) contributions reduce taxable income. Catch-up: extra $7,500 for ages 50-59/64+, or $11,250 for ages 60-63. Roth 401(k) contributions are not deductible.

Traditional IRA contributions may be deductible depending on income and workplace plan coverage. Catch-up $1,000 for 50+. Roth IRA not deductible but grows tax-free.

Health Savings Account: $4,300 individual, $8,550 family in 2026. Triple tax advantage: deductible contribution, tax-free growth, tax-free withdrawals for medical expenses.

Deduct up to $2,500 of student loan interest paid. Income phase-out applies. Available even if you don't itemize.

Self-employed deduct half of self-employment tax from adjusted gross income. Reduces both income tax and AGI for other phase-outs.

Per qualifying child under 17. Refundable portion up to $1,700. Phase-out begins at $200,000 single ($400,000 joint). Made permanent and indexed to inflation by OBBBA.

Refundable credit for low-to-moderate income workers. Maximum $8,231 with 3+ children, $664 with no children. Income limits apply. Reduces taxes owed and may produce a refund.

American Opportunity Credit: up to $2,500/student for first 4 years of college (40% refundable). Lifetime Learning Credit: up to $2,000/return for any education.

Credit for new qualifying electric vehicles. Amount depends on vehicle components and assembly. Income limits: $150,000 single, $300,000 joint.