Student loan payments are not deductible as a whole, but the interest portion of qualifying student loan payments is deductible above the line on Schedule 1 (Form 1040), Line 21, up to $2,500 per year, and that deduction is available regardless of whether you itemize.

529 plan contributions are not federally tax-deductible, but the plan’s core federal advantage is that earnings grow tax-free and qualified distributions are never taxed, and the One Big Beautiful Bill Act significantly expanded the list of qualifying expenses beginning July 4, 2025.

Roth IRA contributions are never tax-deductible, contributions are made with after-tax dollars and do not reduce adjusted gross income in the year they are made, but qualified distributions in retirement, including all earnings, are completely tax-free.

Traditional 401(k) contributions reduce your taxable income, but for W-2 employees, this tax benefit happens automatically through payroll. Your employer excludes the contributions from the wages reported in Box 1 of your W-2, so there is no separate deduction to claim on Form 1040.

Most closing costs are not tax-deductible, but three categories can produce a deduction for itemizers: qualifying mortgage points, per diem mortgage interest paid at closing, and the buyer’s share of real estate taxes paid at settlement.

Home equity loan and HELOC interest is tax-deductible, but only when the borrowed funds are used to buy, build, or substantially improve the home that secures the loan.

College expenses are not tax deductible for parents under current federal law, but they can generate two tax credits, the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC), that reduce tax owed dollar for dollar.

Moving expenses are not tax deductible for most taxpayers under current law, but active duty members of the Armed Forces who move due to a permanent change of station can deduct unreimbursed qualifying moving costs, and beginning in 2026, certain intelligence community members may also qualify.

Down payment assistance for first-time home buyers is financial aid that reduces or eliminates the upfront cash required to purchase a home, available through federal loan programs, state grants, and profession-specific resources that can often be combined.

Down payment assistance for non-first-time home buyers is financial aid available to repeat buyers who have previously owned a home, offered through programs that either have no first-time buyer requirement or waive that requirement under specific conditions.