Don’t overlook these common tax deductions in 2026

One of the ways to reduce your liability this tax year is to decrease your taxable income. And the best way to do this is by taking advantage of tax deductions. There are some common tax deductions you can take “above the line” that reduce your Adjusted Gross Income on your tax return. Others will be considered “below the line” and they will reduce your taxable income.

Wondering what might apply to you? Check out our list of common and valuable tax breaks below.

What is a tax deduction and how does it reduce my taxable income?

A tax deduction reduces the amount of income subject to taxation from the Internal Revenue Service (IRS), ultimately reducing your overall tax liability.

There are two types of tax deductions: above-the-line deductions and below-the-line deductions. We’ll give you a brief description of both as we dive in and later, a side-by-side comparison.  

Another important concept to consider when reviewing deductions for taxes is that tax deductions are different than tax credits. Tax deductions lower your taxable income (indirectly lowering the tax owed) and tax credits lower your actual tax owed dollar for dollar.

Check out the difference between  tax credits and tax deductions for details. And, in case you’re wondering, “tax write offs” are another way to say tax deductions.

What is tax deductible?

Not every expense is tax deductible. Generally, items that are tax deductible are eligible expenses related to your personal life or business (if you own a business or are self-employed). The eligible part is important. Why? Because tax laws change and what may have been eligible in one tax year may not be the next year.

What tax deductions can I claim?

The tax deductions you can claim are based on your activity during the year—think life changes such as having a baby, marriage, or buying a house. But smaller actions like donating to a charity or paying student loans can also lead to a deduction.

Of course, you can only claim deductions for expenses that apply to you or that you qualify for. For example, if you made a deductible Traditional IRA contribution last year, but not this year, then you wouldn’t be able to claim that deduction this year.

It’s a good idea to take a fresh look each tax year so you don’t miss anything, but also use those big life events as a signal to get ahead of tax planning. You can get an estimate on this year’s taxes with our easy-to-follow income tax calculator.

What’s the difference between above-the-line and below-the-line deductions?

Here’s a deeper dive on the difference between above-the-line and below-the-line tax deductions. Essentially, it’s about whether the deductions are applied as part of calculating your adjust gross income or after it.

• Above-the-line deductions: Above-the-line tax deductions, or adjustments to income, are subtracted from your gross income to arrive at your adjusted gross income (AGI).
• Below-the-line deductions: Below-the-line tax deductions are subtracted after determining your adjusted gross income (AGI)—allowing you to arrive at your taxable income.

List of common tax deductions for 2026

From the home office deduction to retirement contributions, here’s a list of tax deductions you may want to know about. While this list doesn’t cover all the federal tax deductions out there, you’ll want to take note of several of these income tax deductions.

Above-the-line deductions:

Deductions subtracted from your gross income to calculate your adjusted gross income are known as “Above-the-line” deductions.

1. Retirement contributions and Traditional IRA deductions

If you qualify to deduct an IRA contribution, your deduction will lower your taxable income, which in turn, will lower your tax. If you contribute to a 401(k) or similar qualified retirement plan through a payroll deduction, you may not even notice you’re lowering your tax bill.

With a Traditional IRA, you can still get a tax deduction without requiring access to an employer plan. However, your tax break may be limited if you also participate in an employer plan. For self-employed taxpayers, SEP IRA and SIMPLE IRA contributions are “above the line” tax deductions. See the other self-employed deductions below.

2. Student loan interest deduction

Did you know you can deduct up to $2,500 of your qualified student loan interest? This education expense deduction is “above the line,” so you don’t have to itemize in order to take advantage of it, but you need to make below a certain level of income to qualify.

3. Self-employment expenses

With working side hustles becoming more popular recently, it’s no surprise that self-employment expenses are more common. For example, if you pay for your own qualified health insurance, that may count as an “above the line” deduction. Also, you can deduct one-half of your self-employment tax above the line.

On top of that, you can deduct business expenses like office supplies, advertising, and business travel from your business income. And, for qualifying individuals, you can take the home office deduction (that’s up next!).

4. Home office tax deductions

Speaking of self-employment, if you’re self-employed and have a home office that meets IRS standards, you can take a tax write-off for it called the home office deduction. For example, if your home office represents 4% of your home’s total square footage, you may be eligible to deduct 4% off that property’s utilities, insurance, and property taxes if you don’t use the simplified method to deduct home office expenses. Just remember there are strict rules around what constitutes a home office with “regular and exclusive use.” See our home office deduction post for details.

5. HSA contributions

Health Savings Accounts (HSAs) are gaining in popularity as health care costs rise and as more employers put more of the cost of insurance on employees. Your after-tax HSA contributions are tax-deductible. Not only does the money grow tax-free when you use it for qualified health care costs, but you can use your contributions to reduce your tax liability to boot!

6. Alimony paid

If you pay alimony, you could take an above-the-line tax deduction. Generally, alimony is not deductible if your divorce was finalized after 2018. To qualify for the alimony tax deduction:

• You must make the payment in cash, not property
• The spouse must receive the payment under a divorce or separation agreement. The agreement can’t specifically exclude the payment from being:
  • Included in the recipient’s income
  • Deducted by the payor spouse
• You can’t reside in the same household as your former spouse when the payment is made if divorced or legally separated.
• Liability for payments must end upon the death of either spouse.

7. Educator expenses

Teachers who incur out-of-pocket expenses can reduce their AGI by claiming a tax deduction of up to $300 (for 2025) for qualified K-12 education items that are used for the classroom. The deduction rises to a maximum of $600 (for 2025) if an educator is married to another eligible educator and filing under the status Married Filing Jointly, although neither can deduct more than $300 of their own expense. Starting in tax year 2026, educators can also deduct qualifying educator expenses as an itemized deduction without limitation.

Below-the-line deductions:

Below-the-line deductions only available to itemizers

It is usually better to claim itemized deductions if your total itemized deductions are more than your standard deduction.

8. Below-the-line charitable donations deduction

You will need to itemize your deductions if you want to deduct your below-the-line charitable donations. Many people find it worth itemizing these deductions—particularly if you give regularly to a church or other charity. Beginning in 2026, the One Big Beautiful Bill Act (OBBBA) also allows an above-the-line charitable deduction of up to $1,000 (and $2,000 for joint filers).

It’s also possible to deduct the current fair market value of goods you donate to charity. Make sure you get a receipt for your donations, whether they are cash or goods. And don’t forget to keep track of your mileage if you drive on behalf of a charity; that’s tax-deductible, too.

9. Mortgage interest deduction

If you own a home and itemize, you can deduct the qualified interest you pay on your mortgage. It’s also possible to deduct refinancing points and other aspects of your home ownership costs, including property taxes. For tax years beginning in 2026, Private Mortgage Insurance (PMI) will once again be tax-deductible, thanks to a provision in the OBBBA.

10. State and local taxes

State and local taxes deduction are a federal tax write-off. The 2025 limit for the SALT deduction is $40,000. State and local taxes include income (or sales), real estate, and personal property taxes.

11. Medical expense deduction

If you’re itemizing deductions, you can take a medical expenses deduction if you have unreimbursed expenses that you paid and are more than 7.5% of your Adjusted Gross Income. Learn more about the medical expense deduction.

Below-the-line deduction available to itemizers and non-itemizers

12. Tips deduction

The deduction is available for up to $25,000 per return in tips for certain taxpayers. It is allowed for taxpayers who file in with the following filing statuses: 

• Single 
• Head of Household 
• Qualifying Surviving Spouse 
• Married Filing Jointly 

For Married Filing Jointly filers, the deduction is limited to $25,000 regardless of whether the spouses’ qualified tip income is more than $25,000.  

This deduction is not available to taxpayers who file Married Filing Separately. This deduction expires after the 2028 tax year.

13. Overtime deduction

The new overtime deduction is available for eligible taxpayers in tax years 2025 through 2028. The deduction reduces taxable income by the taxpayer’s qualified overtime pay up to $12,500 (for Single, Head of Household, and Qualifying Surviving Spouse filers) or $25,000 (for Married Filing Jointly filers).

14. Car Loan Interest Deduction

From 2025 through 2028, you are allowed a personal deduction for interest paid on qualified loans for the purchase of new personal-use passenger vehicles, if eligibility requirements are met. The Car Loan Interest Deduction applies to loans for new vehicles purchased for personal use (not business or commercial).

15. An enhanced senior deduction

The senior deduction is a separate, additional deduction to reduce taxable income. Married couples filing jointly 65 or older can take a $6,000 deduction per eligible taxpayer ($12,000 in total). The deduction expires after the 2028 tax year.

What doesn’t count as a tax deduction?

While there are many tax deductions that can help offset your tax, these (unfortunately) don’t qualify: 

• Car inspection fees
• Customs duties
• Employee business expenses (eliminated in 2017 tax law)
• Federal excise tax
• Federal income tax
• Gas tax
• License fees
• Gift tax
• Personal expenses
• Social Security, Medicare, FUTA, and RRTA taxes
• Real property improvements
• Tax paid for someone else

What documentation should I keep to support my tax deductions?

No matter what tax deduction(s) you take, be sure to properly document them.

Always keep records that prove your eligibility for each deduction. Examples include:

• Receipts for charitable donations (cash and goods)
• Mileage logs for charitable driving
• Medical bills and insurance statements
• Proof of home office expenses (utility bills, square footage calculations)
• Loan documents for car purchases
• Any agreements for alimony payments

Good documentation helps you avoid issues with the IRS and ensures you can claim every deduction you qualify for. Check out our tax prep checklist to review the forms and other documentation you’ll need to file. Before you take a deduction, make sure you can prove that you are eligible to claim it. If you need help, turn to the experts at H&R Block. That’s what we’re here for!

Get help claiming tax deductions

Understanding tax deductions is crucial if you want to maximize your potential tax refund and lower your tax bill at tax time.

Need help determining which tax credits or deductions apply to you? Whether you choose to file with a tax pro or file with H&R Block Online, we can help you navigate your taxes. We’ll help you find potential tax credits and breaks, and you can rest assured that we’ll get you the biggest tax refund possible.

Common Tax Deductions – FAQs

Which tax deductions can I claim without itemizing?

You can claim “above-the-line” deductions even if you take the standard deduction. Common tax deductions in this category include:

• Retirement contributions (like Traditional IRA or 401(k))*
• Student loan interest (up to $2,500 if you qualify)
• Health Savings Account (HSA) contributions*
• Certain self-employment expenses
• Educator expenses for classroom supplies
• Alimony paid (if your divorce was finalized before 2019)

*Pre-tax 401(k) and pre-tax HSA contributions are deducted from your pay before taxes, so they aren’t claimed on your return the same way as other deductions. 

 What are the most common tax deductions people claim?

Some of the most common federal tax deductions include:

• Retirement contributions (IRA, 401(k), SEP IRA)
• Student loan interest
• Charitable donations
• Mortgage interest
• State and local taxes (SALT)
• Medical expenses over 7.5% of your AGI
• Home office expenses for self-employed taxpayers
• Health Savings Account contributions

 

What doesn’t qualify as a tax write off?

While there are lots of things that can qualify as deductions for taxes, there are others that you can’t deduct. These items don’t qualify as a tax write-off: 

• Personal expenses
• Unreimbursed employee business expenses
• Federal income tax
• Federal excise tax
• Social Security, Medicare, FUTA, and RRTA taxes
• Customs duties
• Most federal estate or gift tax (except estate tax paid in respect to a decedent)
• Gasoline taxes
• Car inspection fees
• Special assessments for improvements to a property
• Tax paid for someone else
• License fees for dog, drivers, or marriage licenses

 

What are the new deductions available under the One Big Beautiful Bill Act (OBBBA)?

The OBBBA introduced several new  ways to reduce your taxable income. Here’s a list of tax deductions from the new law:

• Above-the-line charitable deduction: Up to $1,000 ($2,000 for joint filers) without itemizing (starting in 2026)
• Qualified Tips Deduction: Up to $25,000 for eligible taxpayers
• Qualified Overtime Deduction: Up to $12,500 for single filers or $25,000 for joint filers
• Car Loan Interest Deduction: For interest on qualified loans for new personal-use vehicles
• Enhanced senior deduction: $6,000 per eligible taxpayer age 65 or older ($12,000 for joint filers)
• Private Mortgage Insurance (PMI): Deductible again starting in 2026 (for taxes filed in 2027)

Tax deduction examples—Above & below the line

Here’s a deeper dive on the difference between above-the-line and below-the-line tax deductions.

• Above-the-line deductions: Above-the-line tax deductions, or adjustments to income, are calculated by subtracting them from your gross income to arrive at your adjusted gross income (AGI). Reducing AGI can impact other items on your return, such as taxable Social Security and eligibility for credits. You can claim these tax breaks regardless if you claim the standard deduction or itemize your deductions.
• Below-the-line deductions: Below-the-line tax deductions, are now divided between itemized deductions and deductions available to itemizers and non-itemizers. Itemized deductions are expenses that you can deduct. And the new OBBBA deductions represent a portion of your income you can deduct. In both cases, the deductions are subtracted from your AGI to reduce your taxable income and tax liability. Itemized deductions are reported on Schedule A of your tax return (Form 1040) and the new OBBBA deductions are reported on Schedule 1-A of your tax return (Form 1040). 

What doesn’t count as an itemized tax deduction?

While there are many tax deductions that can help offset your tax, these (unfortunately) don’t qualify: 

• Car inspection fees
• Customs duties
• Employee business expenses (eliminated in 2017 tax law)
• Federal excise tax
• Federal income tax
• Gas tax
• License fees
• Gift tax
• Personal expenses
• Social Security, Medicare, FUTA, and RRTA taxes
• Real property improvements
• Tax paid for someone else

Remember to document!

No matter what tax deduction(s) you take, be sure to properly document them. This is especially true with self-employment expenses and with charitable donations. Keep receipts to back you up. Before you take a deduction, make sure you can prove that you are entitled to it, and consider consulting a tax professional to make sure you’re qualified for every tax credit or deduction you take on your tax return.

Get help claiming tax deductions

Understanding tax deductions is crucial if you want to maximize your potential tax refund and lower your tax bill at tax time.

Need help determining which tax credits or deductions apply to you? Whether you choose to file with a tax pro or file with H&R Block Online, we can help you navigate your taxes. We’ll help you find potential tax credits and breaks, and you can rest assured that we’ll get you the biggest tax refund possible.