Tax Deductions and Credits List: Complete Guide for 2026
Last updated 04/16/2025 by
SuperMoney TeamEdited by
Andrew LathamSummary:
Tax season can feel overwhelming, especially with ever-evolving laws and IRS updates. But don’t worry—we’ve got you covered. This 2025 tax guide breaks down the deductions and credits available this year so you can lower your taxable income, boost your refund, and file with confidence.
The U.S. tax code is incredibly complex. According to the IRS, 90% of taxpayers need help preparing their taxes each year. With 2025’s inflation adjustments and rule changes, it’s more important than ever to stay informed. Whether you work with a pro or DIY it with software, understanding what you can deduct or claim as a credit will make tax season easier—and potentially more profitable.
This updated guide covers tax deductions, credits, filing tips, and frequently asked questions for 2025. It’s a great place to start before speaking with a tax preparation or tax relief company.
How do you claim tax deductions?
You can claim deductions in one of two ways: by taking the standard deduction or by itemizing. You cannot do both. Most Americans choose the standard deduction, especially since it increased again for 2025.
The benefit? It’s simple—you don’t need to track receipts or list expenses. But itemizing may be worth the extra effort if your deductible expenses exceed the standard deduction.
What is the standard tax deduction for 2025?
Here are the IRS standard deduction amounts for 2025:
- Single or Married Filing Separately: $15,000
- Married Filing Jointly or Qualifying Widow(er): $30,000
- Head of Household: $22,500
Example: If you earn $40,000 and are single, subtracting the $15,000 standard deduction leaves $25,000 in taxable income.
Should I itemize my tax deductions?
Itemize if your eligible deductions are more than your standard deduction. Typical itemized deductions include:
- Mortgage interest
- State and local taxes (up to $10,000 cap)
- Charitable contributions
- Medical expenses over 7.5% of your AGI
If audited, the IRS may request proof (like receipts), even years after filing. So, if you go this route, be prepared to document everything.
What is the difference between a tax deduction and a tax credit?
A deduction reduces your taxable income, while a credit directly reduces your tax bill. For example:
- Deduction: Lowers the amount of income taxed
- Credit: Reduces your tax bill dollar-for-dollar. Some credits are refundable, meaning you can get a refund even if you owe no tax.
List of tax deductions for 2025
Let’s explore some of the most common deductions you can take this year.
Healthcare deductions
- HSA contributions: Tax-deductible up to the IRS limit ($4,150 for individuals, $8,300 for families)
- Medical expenses: Deductible if they exceed 7.5% of your adjusted gross income (AGI)
Investment deductions
- Capital losses: Offset gains or deduct up to $3,000 per year
- IRA contributions: Traditional IRA contributions may be deductible
Education deductions
- Student loan interest: Deduct up to $2,500 if your income qualifies
- Educator expenses: Teachers can deduct up to $300 for classroom materials
Work-related deductions
- Home office: If self-employed and use a space exclusively for business
- Mileage: Standard IRS mileage rate is 67¢ per business mile driven
- Self-employment deductions: Includes half of self-employment tax, health insurance, and retirement plan contributions
Charitable donations
You can deduct qualified charitable contributions if you itemize. In 2025, you can generally deduct up to 60% of your AGI for cash donations to eligible charities.
Family, child, and dependent deductions
- Child tax credit: Up to $2,000 per child under 17; $1,700 is refundable
- Dependent care credit: Up to $3,000 for one child or $6,000 for two or more
- 529 contributions: Deductible in many states if contributed to a qualifying plan
Education-related credits
- American Opportunity Credit: Up to $2,500 per eligible student (partially refundable)
- Lifetime Learning Credit: Up to $2,000 per return (nonrefundable)
Home and energy credits
- Energy-efficient home improvements: 30% tax credit for items like solar panels and windows
- Residential clean energy credit: Covers renewable systems like solar, geothermal, and battery storage
Business deductions and credits
If you’re self-employed or own a small business, here are common write-offs:
- Office supplies and software
- Business travel and meals (50%)
- Marketing and advertising
- Insurance premiums
- Qualified business income deduction (up to 20%)
Electric vehicle credit (Clean Vehicle Credit)
You may be eligible for up to $7,500 in tax credits for buying a qualified EV in 2025. Restrictions apply based on vehicle price, battery components, and your income.
Want help maximizing your tax credits and deductions?
There’s a lot to keep track of, and it can be easy to miss out on valuable savings. If you want to ensure you’re taking advantage of every deduction and credit, work with an expert. Compare the best tax prep services here.
Frequently asked questions about tax deductions
Still have questions? That’s totally normal. The U.S. tax code is complicated, and every taxpayer’s situation is unique. Below are some of the most common 2025 tax deduction questions. For specific advice, it’s always best to consult a tax professional.
What tax deductions are available for homeowners?
Homeowners can deduct a variety of expenses if they itemize. These include:
- Mortgage interest (on up to $750,000 of mortgage debt)
- Private mortgage insurance (PMI) premiums
- Points paid at closing
- Home equity loan interest (if used for home improvements)
- Property taxes (up to $10,000 combined SALT limit)
- Home office deduction (if self-employed)
- Eligible home selling costs
- Capital gains exclusion (up to $250,000 for single filers, $500,000 for married filing jointly)
What deductions are available for rental property owners?
If you own and rent out property, you may deduct ordinary and necessary expenses, including:
- Mortgage interest
- Property taxes
- Depreciation
- Maintenance and repairs
- Insurance premiums
- Utilities and advertising
- Legal, professional, and management fees
- Travel related to property management
Can I deduct a vehicle donated to charity?
Yes, but your deduction depends on how the charity uses the vehicle:
- If the charity sells it, your deduction is limited to the sale price (typically noted on Form 1098-C)
- If they keep and use the vehicle, you may deduct its fair market value
- If sold for $500 or less, you can deduct $500 or the fair market value—whichever is less
Are tithes or religious donations tax-deductible?
Yes, donations to qualified religious organizations (e.g., churches, synagogues, mosques) are generally deductible if you itemize. Make sure the organization is a registered 501(c)(3).
Are tax preparation fees deductible?
No. As of 2018, tax prep fees are not deductible for individuals due to the suspension of miscellaneous itemized deductions. However, self-employed individuals may deduct the portion related to their business income on Schedule C.
What is a tax account number?
This refers to an Employer Identification Number (EIN) issued by the IRS or a state-assigned business tax ID number used to track tax payments and filings.
What is a tax deduction card?
While not commonly used in the U.S., in some countries, this term refers to a document showing how much tax is to be withheld from wages. In the U.S., a similar function is served by your W-4 form and pay stubs.
How do deductions impact my gross income?
Deductions don’t lower your gross income—they reduce your taxable income. Your gross income is the total earned, while your taxable income is what remains after applying deductions and exemptions.
Can I claim a deduction without a receipt?
Technically yes, but it’s risky. The IRS recommends documentation for all deductions. For cash contributions under $250, a bank record or written acknowledgment may suffice. If audited, lacking proof could cost you the deduction.
What types of income are not taxable?
Examples of non-taxable income include:
- Gifts and inheritances
- Life insurance payouts
- Child support
- Workers’ compensation
- Reimbursements for qualified medical expenses
- Some Social Security benefits (depending on income)
- Gain on sale of your primary residence (up to limits)
What is the difference between a deduction and a credit?
A deduction reduces your taxable income, while a credit directly reduces your tax bill. Credits are generally more valuable than deductions of the same amount.
What’s the difference between a deduction and an exemption?
Exemptions were eliminated under the 2017 tax law. Before that, they allowed a set amount to be excluded from income for each taxpayer and dependent. Today, deductions and credits have replaced exemptions.
How is a tax offset different from a deduction?
An offset (such as the Earned Income Tax Credit) directly reduces the amount of tax you owe. A deduction only reduces your taxable income, which may lower your tax bill depending on your tax bracket.
Can tax deductions increase my refund?
Yes. By reducing your taxable income, deductions can decrease the amount of tax you owe. If you overpaid taxes throughout the year, this can increase your refund.
Can I carry over unused deductions?
Most deductions cannot be carried forward. Exceptions include:
- Charitable contributions (over the AGI limit)
- Capital losses (up to $3,000/year)
- Home office startup costs (for businesses)
- Investment interest expense
What is tax-deductible interest?
Interest you pay on certain loans may be deductible. This includes:
- Mortgage interest
- Student loan interest (up to $2,500)
- Investment interest (up to net investment income)
Missed something in this article?
This list covers many common scenarios, but it’s not exhaustive. Tax rules change and every situation is different. To make sure you’re maximizing your deductions and minimizing your tax bill, consult a qualified tax professional.
If you owe a large tax debt, consider working with a tax relief company. The best providers have experienced tax attorneys and offer money-back guarantees and flexible pricing. Compare top-rated companies to find the right fit for your situation.
Share this post:
Table of Contents