Tax filing deadlines approach each year. Get ready now by understanding basic deductions you can take.
Standard Deduction
Whether you file as a single or married person, you receive a standard deduction on your taxes. The basic standard deduction depends on your filing status and is adjusted periodically.
Typical filing statuses
- Single and married filing separately
- Married couples filing jointly
- Head of household
When the standard deduction doesn't apply
- You itemize deductions
- You're married but file separately and your spouse itemizes deductions
- You, or your spouse if you file a joint return, is a non-resident alien for any portion of the tax year
- You file a return that covers fewer than 12 months
Taxpayers who are over 65 years of age, fully or partially blind, or both receive a larger standard deduction in most years; check current guidance for exact amounts.
Student Loan Interest
In addition to your standard deduction, you can often deduct student loan interest you, your spouse if filing jointly, or your dependents paid. There is a maximum deduction and income limits that can reduce or eliminate the deduction for higher earners.
Mortgage Interest
Deduct the mortgage interest you pay on your home if you meet three basic guidelines: you must itemize deductions, make payments on a qualifying home, and be legally liable for the mortgage.
Property Taxes
If you pay property taxes on a property you own, you can typically deduct those payments. This deduction usually applies even if your taxes are paid via an escrow account.
Medical Expenses
If your qualifying medical expenses exceed a percentage of your adjusted gross income, you may be able to deduct them. Qualifying expenses must be related to diagnosis, cure, treatment, or prevention and can include medications, insurance premiums, medical devices, long-term care, and transportation costs. Save detailed records if you plan to claim this deduction.
Charitable Donations
Donations you make to qualified charitable organizations can be itemized and deducted on your tax return. You must donate to a qualified organization rather than an individual, assign a fair market value to items you donate, and obtain a written receipt from the organization.
Unreimbursed Job Expenses
Ordinary and necessary job-related expenses may be deductible if your employer does not reimburse you. Examples include driving to meet clients, paying for hotels when traveling for work, or purchasing business supplies; rules vary by circumstance and tax year.
These are examples of deductions you can consider when you file your taxes. Your accountant can provide additional details. Discuss any special considerations with your Human Resources office as you prepare your tax return. If you run a retail or beauty business, consider business protections such as Makeup Insurance.
If you need help translating these rules to your situation, talk to your agent.
Frequently Asked Questions
Can I take the standard deduction and also claim student loan interest?
Yes. The standard deduction is separate from the student loan interest deduction; you can claim both if you qualify for the loan interest deduction.
When should I itemize instead of taking the standard deduction?
Itemize when the total of your deductible expenses—such as mortgage interest, property taxes, medical expenses above the applicable threshold, and charitable donations—exceeds the standard deduction for your filing status.
Do I need receipts for charitable donations?
Yes. You should keep written receipts or acknowledgments from the charity for all donations, and assign a fair market value for donated items.
Are commuting costs to and from my regular workplace deductible?
Generally, commuting costs are not deductible. Only job-related travel away from your tax home or other qualifying business expenses may be deductible when unreimbursed.