Credits
- Earned income tax credit. Many eligible workers don’t claim it. Rules.
- Child tax credit and credit for other dependents. Details.
- Saver’s credit. Up to $1,000 for lower-income retirement savers. Details.
- Child and dependent care credit. For work-related care expenses for a child under 13 or a dependent who can’t care for themselves.
- Education credits. The American Opportunity Credit and Lifetime Learning Credit; you must have a Form 1098-T and can’t double-dip expenses.
- Premium tax credit. If you bought marketplace health coverage, you reconcile advance payments on Form 8962.
- Credit for the elderly or disabled. For some low-income seniors and people with disabilities.
Above-the-line deductions
- Student loan interest up to $2,500. Details.
- HSA contributions made directly. Limits.
- Educator expenses for eligible K-12 teachers, within a dollar limit.
- Traditional IRA contributions (subject to income and workplace-plan rules).
- Half of self-employment tax for freelancers.
- Self-employed health insurance premiums.
New or newer deductions
- Qualified tips and overtime for 2025–2028. Explained.
- Senior deduction of up to $6,000 per eligible person for 2025–2028.
- Car loan interest for qualifying new, U.S.-assembled personal-use vehicles.
Itemized deductions people overlook
- State and local taxes, including sales tax if you chose it over income tax, subject to the cap. Standard vs itemized.
- Charitable mileage and out-of-pocket volunteer costs. Rules.
- Medical expenses above 7.5% of AGI, including mileage to appointments and some insurance premiums paid with after-tax dollars.
Business and side-hustle
- Home office, mileage, and the qualified business income deduction for self-employed people. See the self-employed guide.
Don’t claim what you can’t support
Every item here requires records. If you can’t document it, don’t claim it. See recordkeeping, and if the IRS asks questions, see what to know about audits.
State-level breaks
Many states have their own credits (renter’s credits, property tax credits, earned income credits, child credits). Check your state’s revenue agency; our state guides highlight some.
Official sources
- IRS Publication 17: Your Federal Income Tax
- IRS: Form 1040 instructions
- IRS: Schedule 1-A (new deductions) explained
- IRS Topic 610: Retirement savings contributions credit
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.