Deductions reduce the amount of your taxable income, so it’s in your best interests to claim as many as possible when filing your tax return.
To get some of the most lucrative tax deductions — including mortgage interest, property taxes, and medical and dental expenses — you must itemize expenses instead of claiming the flat-amount standard deduction.
However, tax reform laws created in 2017 and 2025 have substantially increased the standard deduction, which means few people itemize anymore.
The standard deduction is available to almost everyone besides dependents. For the 2025 tax year — the one for which your return is due by April 2026 — it’s set at $15,750 for most single taxpayers under age 65 and $31,500 for most married couples under 65 who file a joint return.
While the standard deduction makes more sense financially for most people nowadays, there are still deductions you can claim even if you don’t itemize your return — including three that are brand-new. Keep reading for some of the deductions that anyone can claim regardless of whether they itemize.
1. Traditional IRA contributions
If you have an individual retirement account (IRA), which the IRS also refers to as an individual retirement arrangement, you can deduct contributions up to the annual limit.
If you’re 49 or younger, that limit is $7,000 for the 2025 tax year. If you’re 50 or older, you may also make an additional “catch-up” contribution — $1,000 for 2025 — for a total of $8,000.
Only contributions to a traditional IRA are tax-deductible, though. Roth IRAs aren’t eligible for a deduction since they come with a different set of tax perks.
2. HSA contributions
If you have a qualifying high-deductible health insurance plan, you can open a health savings account (HSA) and deduct your contributions.
For the 2025 tax year, those with self-only coverage can contribute up to $4,300 to an HSA, while those with family coverage have a contribution limit of $8,550.
Those age 55 and older are eligible to make an additional $1,000 in catch-up contributions.
3. Archer MSA contributions
Similar to a health savings account, an Archer medical savings account allows self-employed individuals and employees of small businesses to pay for qualified health care expenses with tax-free dollars.
You’ll need a qualified high-deductible health insurance plan to open an Archer MSA, and contributions up to 75% of your insurance deductible can be deducted on your tax return. If you have a self-only plan, the limit on deductible contributions is 65% of your plan deductible.
Contributions to an Archer MSA also can’t exceed your annual income for the employer through whom you have your insurance.
4. Penalties for early withdrawals of savings
Some investments, such as a certificate of deposit (CD), require that you leave money in an account for a certain period. If you don’t, you could get hit with an early withdrawal penalty. Fortunately, the IRS allows people to deduct the penalties reported on Forms 1099-INT or 1099-OID (which you would receive from the financial institution where you had the CD, if applicable).
However, note that this deduction does not apply to penalties on early withdrawals from retirement accounts such as IRAs.
5. Small-business retirement plan contributions
Self-employed individuals and small-business owners have other retirement fund deductions available to them. These include contributions made to:
- SEP-IRA
- SIMPLE-IRA
- Individual 401(k)
Talk to a finance professional for more information about eligibility for these plans and limits on deductible contributions.
6. Student loan interest
Depending on your income, you may be entitled to deduct student loan interest from your taxes. Currently, up to $2,500 in interest can be deducted by those who meet income requirements.
The ability to deduct student loan interest begins to phase out for single taxpayers once their modified adjusted gross income reaches $80,000, and the deduction is eliminated for those with incomes greater than $95,000 per year. For married couples filing jointly, the deduction begins to phase out at incomes of $165,000 and is eliminated at $195,000.
7. Educator expenses
Educators working at the elementary or secondary level can deduct up to $300 of out-of-pocket expenses related to their job. These costs can include computers, classroom supplies and professional development courses, among other things.
The deduction also includes the out-of-pocket cost to teachers of protective equipment such as face masks and sanitizer.
8. Alimony paid
If you are making alimony payments to a former spouse, you may be able to deduct those payments from your income. However, this deduction does not apply to everyone; it depends on when you got divorced. As the IRS says:
“The payer spouse can’t deduct alimony or separate maintenance payments made under a divorce or separation agreement (1) executed after 2018, or (2) executed before 2019 but later modified if the modification expressly states the repeal of the deduction for alimony payments applies to the modification. Alimony and separate maintenance payments the recipient spouse receives under such an agreement are not included in their gross income.”
9. Self-employment taxes
Federal Insurance Contributions Act (FICA) taxes fund both the Social Security and Medicare programs. While employees split these taxes with their employers, self-employed workers must pay the entire 15.3% tax themselves.
Fortunately, the IRS allows self-employed workers to deduct half that amount from their income taxes. Use Schedule SE or your tax preparation software to calculate the tax and your deduction.
10. Self-employed health insurance premiums
Self-employed workers can also deduct premiums paid for health insurance coverage for themselves, their spouse and their children.
As with other deductions, there are rules about who is eligible and how much you can deduct. The Self-Employed Health Insurance Deduction Worksheet in the Form 1040 instructions can help you figure out how much you can claim.
11. Moving expenses of active military members
If you are a member of the U.S. armed forces and find yourself having to move because of a military order, you can deduct any unreimbursed moving expenses incurred by you, your spouse or your dependents.
The IRS allows a deduction for “reasonable” expenses that may include storage and lodging while traveling but not meals.
12. Qualified charitable distributions
Older Americans can avoid paying income tax on certain retirement fund withdrawals if they use that money for a qualified charitable distribution. Commonly called QCDs, these distributions become an option at age 70½, but they may be most beneficial to individuals who are slightly older.
By age 73 or 75 (depending on their year of birth), anyone with a traditional retirement account such as a 401(k) plan or IRA must take required minimum distributions, known as RMDs. The size of an RMD is determined by a formula that takes into account a person’s age and the fund balance, and depending on these factors, it can be a significant amount of money.
Since an RMD is subject to federal income tax, it also has the potential to result in a large tax bill. Failure to take the withdrawal is also costly since the IRS will then assess a penalty of 25% of the RMD amount.
But retirees can avoid paying tax on an RMD if they send the distribution directly to a qualified charity. What’s more, the QCD will ensure the RMD doesn’t boost a taxpayer’s adjusted gross income, which could in turn limit the ability to take other deductions.
Bottom line: Using a tax-exempt QCD can be a good way for charitably minded seniors to minimize taxes without itemizing deductions.
3 new deductions
The tax reform law of 2025 created several brand-new deductions, including three that took effect starting in 2025 — meaning you can claim them on your return that’s due by April.
All three are available to anyone who is eligible for them, regardless of whether you claim the standard deduction or itemize:
- The tax deduction for overtime, which lets you deduct up to $12,500, or $25,000 for married couples filing jointly
- The tax deduction for tips, which lets you deduct up to $25,000
- The senior tax deduction, which is worth up to $6,000 per person
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