How To Deduct On Tax Returns

Let’s Talk About Tax Deductions

Okay, let’s get one thing straight: tax deductions are your best friend. They’re not some secret code only accountants understand. They’re just ways to lower the amount of your income that the government can actually tax.

Think of it this way: if you earned $70,000 but had $15,000 in deductions, the IRS only taxes you as if you made $55,000. That means more money stays in your pocket. Pretty cool, right?

We’re going to walk through how to find and claim these deductions for your 2026 tax return. Don’t worry — it’s way easier than it looks.

 

 

Step 1: The Big Choice — Standard vs. Itemized

This is your first and most important decision. You can either take the standard deduction OR you can itemize your deductions. You can’t do both, so you have to pick the one that saves you more money.

The standard deduction is a flat-dollar, no-questions-asked amount that you can subtract from your income. For 2026, the amounts are:

Single: $14,600
Married Filing Jointly: $29,200
Head of Household: $21,900

Itemizing is when you add up all your individual deductible expenses one by one. You only do this if your total is *more* than the standard deduction amount for your filing status. If you’re single and your itemized deductions only add up to $9,000, you’d just take the standard $14,600 and call it a day.

 

 

Step 2: Go on a Hunt for Itemized Deductions

If you think you might be able to beat the standard deduction, it’s time to start digging. This is where most of the work is, but it can totally pay off.

 

 

Mortgage Interest

If you own a home, this is often the biggest deduction you’ve got. Your lender will send you a form called a 1098 in January. It literally has the exact number you can deduct in a box. Easy peasy.

 

 

State and Local Taxes (SALT)

This includes state income taxes, property taxes, and either sales tax or local income tax. There’s a catch, though. The most you can deduct here is $10,000 per household, period. It’s a cap that trips a lot of people up.

 

 

Charitable Donations

Did you give money or goods to a qualified charity? You can deduct that! Keep receipts for cash donations. For stuff you donated, like that giant bag of clothes, get a receipt from the charity. You have to estimate its value, so be honest but don’t sell yourself short.

 

 

Medical Expenses

This one is tough to qualify for. You can only deduct medical expenses that are more than 7.5% of your Adjusted Gross Income (AGI). So if your AGI is $80,000, you can only start deducting expenses *after* you’ve spent $6,000 (that’s 7.5% of $80k). It’s a high bar, but not impossible if you had a major medical event.

 

 

Step 3: Don’t Forget the “Other” Deductions

Here’s a piece of tax expert advice almost everyone misses: some deductions can be taken *even if you take the standard deduction*. These are called “above-the-line” deductions, and they’re awesome.

 

 

Student Loan Interest

Did you pay interest on student loans? You can deduct up to $2,500 of the interest you paid. Your loan provider will send you a form (1098-E) with the amount.

 

 

IRA Contributions

If you contributed money to a *traditional* IRA (not a Roth IRA), you can likely deduct that contribution. It’s a great way to save for retirement and get a tax break right now.

 

 

HSA Contributions

If you put money into a Health Savings Account (HSA), that contribution is deductible. This is one of the best tax preparation tips out there because HSAs give you a triple tax benefit. The money goes in tax-free, grows tax-free, and comes out tax-free for medical costs.

 

 

Tax Expert Advice: Pro Tips Nobody Tells You

Want to really get ahead? Here are a couple of tricks I’ve learned over the years.

 

 

Try “Bunching” Your Deductions

Let’s say your itemized deductions are always just under the standard deduction amount. Try “bunching” them. For example, you could make your 2026 *and* 2027 charitable donations all in December of 2026. This might push you over the itemized limit for one year, allowing you to claim them, and then you just take the standard deduction the next year.

 

 

Keep Records Like Your Refund Depends On It

Because it does! The IRS wants proof. You don’t have to send in your receipts when you file, but you need to have them if you ever get audited. Use a spreadsheet, a folder, or an app. Just keep everything organized so you’re not scrambling later.

 

 

Are You Self-Employed? That’s a Whole New World.

If you have a side hustle or are self-employed, you have access to a ton of other business deductions. Things like a home office deduction, mileage, supplies, and software are all on the table. This happens on a different form (Schedule C), but it’s a huge way to lower your tax bill.

 

 

You’ve Got This!

See? Not so scary. It’s really just a two-step process: find all your possible deductions, then compare your itemized total to the standard deduction and pick the winner.

Modern tax software makes this super simple by asking you questions and doing the math for you. But now you know what’s happening behind the scenes. You’re in control, and you’re ready to get every single dollar back that you deserve.