What can you deduct if you don't itemize?
Asked by: Andrew Pfeffer | Last update: August 19, 2025Score: 4.5/5 (73 votes)
- Alimony payments.
- Business use of your car.
- Business use of your home.
- Money you put in an IRA.
- Money you put in health savings accounts.
- Penalties on early withdrawals from savings.
- Student loan interest.
- Teacher expenses.
Can I deduct anything if I don't itemize?
Tip: For tax years 2020 and 2021 only: Even if you don't itemize deductions, you can still deduct up to $300 of cash charitable contributions on your 2020 tax return (the one you'll file in 2021). You can claim an "above-the-line" deduction on Schedule 1.
What is an alternative to itemizing deductions?
Standard deduction
The IRS doesn't often give you options. But it does allow you to choose between taking the standard deduction or the itemized deductions on your income tax return. Visit the IRS' website for specifics on the standard deductions.
What is the most overlooked tax deduction?
Unreimbursed moving expenses if you had to move in order to take a new job (exception: active-duty military moving because of military orders) Most investment expenses, including advisory and management fees. Tax preparation fees (except for fees to prepare Schedules C, E, or F, which are deductible business expenses)
Can you take donations off your taxes if you don't itemize?
Taxpayers who took the standard deduction used to be able to claim up to $600 in cash donations to qualified charities without having to itemize. They can no longer do so. Despite these changes, there are still many ways to make charitable gifts work for causes you believe in — and your tax returns.
Itemized Deduction vs. Standard Deduction, Explained.
Is it worth claiming goodwill donations on taxes?
You can deduct every goodwill charitable contribution you make from your taxable income. While this deduction doesn't affect self-employment taxes, it does help when paying income taxes.
Can I deduct charitable contributions if I don't itemize 2024?
For the tax year ending on Dec. 31, 2024, supporters of public charities may deduct their contributions as long as they itemize. This year, donors may generally contribute up to 60 percent of their adjusted gross income (AGI) for donations of cash held for over a year.
What else can I write off on my taxes?
- Bad debts.
- Canceled debt on home.
- Capital losses.
- Donations to charity.
- Gains from sale of your home.
- Gambling losses.
- Home mortgage interest.
- Income, sales, real estate and personal property taxes.
What can I claim to get the least taxes taken out?
- Increase the number of dependents.
- Reduce the number on line 4(a) or 4(c).
- Increase the number on line 4(b).
What lowers your taxes the most?
- Take advantage of tax credits.
- Save for retirement.
- Contribute to your HSA.
- Setup a college savings fund for your kids.
- Make charitable contributions.
- Harvest investment losses.
- Maximize your business expenses.
At what point is it worth it to itemize deductions?
You should itemize deductions on Schedule A (Form 1040), Itemized Deductions if the total amount of your allowable itemized deductions is greater than your standard deduction or if you must itemize deductions because you can't use the standard deduction.
How much mortgage interest can I deduct on my taxes?
You can deduct the mortgage interest you paid during the tax year on the first $750,000 of your mortgage debt for your primary home or a second home. If you are married filing separately, the limit drops to $375,000.
How to get the most out of your tax return?
- Consider your filing status. Believe it or not, your filing status can significantly impact your tax liability. ...
- Explore tax credits. Tax credits are a valuable source of tax savings. ...
- Make use of tax deductions. ...
- Take year-end tax moves.
What are three itemized deductions I could claim?
- mortgage interest you pay on up to two homes.
- your state and local income or sales taxes.
- property taxes.
- medical and dental expenses that exceed 7.5% of your adjusted gross income.
- charitable donations.
Can I deduct my car personal property taxes?
Personal property taxes
You can deduct the tax you pay on personal property — like cars and boats. Personal property tax — also called an excise tax — is based on the value of these personal items. To deduct property taxes, all of these must apply: The tax is imposed on personal property.
How do I lower my adjusted gross income?
- Contribute to a Retirement Account.
- Deduct Student Loan Interest.
- Deduct Education Expenses.
- Contribute to a Health Savings Account.
- Deduct Business Expenses.
- Other Ways to Reduce AGI.
What is the simplest tax return to fill out?
The simplest IRS form is the Form 1040EZ. The 1040A covers several additional items not addressed by the EZ. And finally, the IRS Form 1040 should be used when itemizing deductions and reporting more complex investments and other income.
What can I claim to pay less taxes?
Some expenses paid during the year, like mortgage interest, can be deducted as itemized deductions. Charitable contributions and medical expenses can also be included as itemized deductions. Due to tax law changes in recent years, it is generally advantageous for most taxpayers to take the standard deduction.
Why do I still owe taxes if I claim 0?
If you claimed 0 and still owe taxes, chances are you added “married” to your W4 form. When you claim 0 in allowances, it seems as if you are the only one who earns and that your spouse does not. Then, when both of you earn, and the amount reaches the 25% tax bracket, the amount of tax sent is not enough.
Are there any deductions you can take without itemizing?
To reap the benefits of deductions without the hassle of itemization, Backman notes you'll need line items that fall into these categories — contributions to your IRA, contributions to your HSA (health savings account), expenses you incur as a teacher like purchasing classroom supplies, and interest on student loans.
Are health insurance premiums tax deductible?
You can include health insurance premiums in your medical expense calculations. However, certain premiums are not eligible for medical expense deductions. You cannot include the following premiums in your tax deductions: Life insurance policies.
What is the maximum you can claim without receipts?
To be clear, you can claim work expenses up to $300 without receipts IN TOTAL (not each item), with basic substantiation. This means that if you have no receipts for work-related purchases, you can still claim up to $300 worth on your tax return.
Can I still deduct donations if I don't itemize?
Charitable donations can be tax-deductible. However, to use this tax break, you must itemize your deductions. This means you add up the value of several possible deductions, such as charitable donations, mortgage interest, and state and local taxes. You then deduct this amount from your adjusted gross income (AGI).
Are medical expenses tax deductible?
Key Takeaways. The IRS allows all taxpayers to deduct their qualified unreimbursed medical care expenses that exceed 7.5% of their adjusted gross income. You must itemize your deductions on IRS Schedule A in order to deduct your medical expenses instead of taking the Standard Deduction.
Which of the following is not a deductible tax?
Final answer:
Excise taxes are not deductible, while real estate taxes, state and local income taxes, and personal property taxes are generally deductible from taxable income. Understanding the nature of these taxes is important for tax planning. Therefore, the correct answer is excise tax.