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Claim the Most Common Tax Deductions
Filing taxes can feel like learning a new language — one that involves a lot of numbers (and let’s be honest, some pretty dry vocabulary). But fear not! The truth is, thankfully, pretty simple.
Let’s start with what a tax deduction is. Think of deductions as your tax return’s “discount codes.” They can reduce the amount you owe by reducing the total income on which you are taxed. (This is different than a tax credit, which reduces your actual tax bill, dollar for dollar.) To use individual tax deductions, you must “itemize,” which involves creating a line-by-line accounting of the deductions you claim.
The Standard Deduction vs. Itemized Deductions
For the 2024 tax year (the taxes you’ll file in 2025), the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. Everybody automatically gets this. You don’t need to do anything special to claim it — just check the box and move on.
The fact that the standard deduction is so large means that itemizing only makes sense if your deductions add up to more than the standard deduction—about 90% of taxpayers take the standard deduction. But if you’ve had a year with significant expenses, then itemizing might be worth your while. Here are some common itemized deductions that could help you top that standard deduction threshold:
- Medical and Dental Expenses: You can deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI). This includes doctor visits, prescriptions, surgeries, and even travel expenses for medical care.
- Mortgage Interest: If you own a home, you may be able to deduct the interest you paid on your mortgage. This is a big one for homeowners, especially in the early years of a mortgage when interest payments are high.
- State and Local Taxes (SALT): You can deduct up to $10,000 for state and local income, sales, and property taxes combined.
- Charitable Contributions: You can deduct your donations to legitimate charities each year. Some people employ a “batching” strategy to push their donations over the threshold — they give more every other year or every third year and only itemize in those years. However, you can always deduct smaller amounts if you're itemizing anyway.
The Home Office Deduction: The Perk of Being Self-Employed
If you worked as a freelancer, contractor, or were self-employed in 2024, you might qualify for the home office deduction. The IRS offers a “simplified option” that gives you $5 per square foot of your office space (up to 300 square feet, for a maximum deduction of $1,500). Just be aware: The office space you count has to be used for business purposes only; it can’t double as a guest room, a nursery, or anything else. Or if you’re super organized, you can use the “regular method” to deduct a portion of your home expenses like utilities, mortgage interest, and repairs — but be aware this gets complicated, so you may want to ask your tax preparer for help.
Other Deductions to Keep in Mind
- Retirement Contributions: Contributions to tax-advantaged retirement accounts like 401(k)s and IRAs can lower your taxable income. Click here to see our latest IRA rates and terms.
- Health Savings Account (HSA): If you have a high-deductible health plan, contributing to an HSA gives you triple tax benefits: contributions are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses aren’t taxed.
- Education Expenses: If you’re paying student loan interest or contributing to a 529 college savings plan, you may be eligible for deductions here.
- Tax Loss Harvesting: If you sold any investments at a loss in 2024, you can use those losses to offset gains and potentially reduce your taxable income.
When In Doubt, Get Help
Taxes can be tricky, especially if you plan to itemize your deductions. If you’re unsure which deductions you can claim or whether itemizing makes sense for you, consult a tax professional who can help guide you through the process.
Granted, filing taxes might not be the highlight of your year, but with the right deductions, you might get a little extra cash back in your pocket — or at the very least, pay a bit less.
- CATEGORIES: Financial Education

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