What things qualify for itemized deductions?

Asked by: Gerson Koss  |  Last update: August 24, 2025
Score: 4.2/5 (30 votes)

If you itemize, you can deduct these expenses:
  • 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 on itemized deductions?

Itemized deductions help taxpayers lower their annual income tax bill. Taxpayers must choose between taking the standard deduction or itemizing. Common itemized deductions include medical expenses, mortgage interest, state taxes, and charitable donations.

What items are 100% tax deductible?

What Is a 100 Percent Tax Deduction?
  • Furniture purchased entirely for office use is 100 percent deductible in the year of purchase.
  • Office equipment, such as computers, printers and scanners are 100 percent deductible.
  • Business travel and its associated costs, like car rentals, hotels, etc. is 100 percent deductible.

What is the 2 rule on itemized deductions?

You can claim part of your total job expenses and certain miscellaneous expenses. These expenses must be more than 2% of your adjusted gross income (AGI).

What is not an itemized deduction?

If you choose the standard deduction, you will not be able to claim itemized deductions. These cover many key areas, such as medical costs, charitable donations, state taxes, and various expenses related to owning a home. However, most people take the standard deduction.

Itemized Deductions vs. Standard Deduction

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How do you know if you qualify for itemized deductions?

Key Takeaways. If you pay mortgage interest, state and local income or sales taxes, property taxes, or have medical and dental expenses that exceed 7.5% of your adjusted gross income, your itemized deductions may exceed your Standard Deduction.

How much can I claim without receipts?

$300 maximum claims rule

This rule states that if the total of your work-related expenses is $300 or less (not including car, travel, and overtime meal expenses, which can be claimed separately), you can claim the total amount as a tax deduction without receipts.

What qualifies as a miscellaneous itemized deduction?

A miscellaneous itemized deduction is an expense that can be subtracted from adjusted gross income to determine taxable income. This deduction includes job or investment expenses and other deductions that are not allowed in computing adjusted gross income or personal exemptions.

Is it worth it to itemize deductions?

If the total is larger than your Standard Deduction, there's a good chance you would benefit from itemizing. All of the rest of your itemized deductions, including state and local taxes, medical expenses, and charitable donations, are just icing on the cake.

Do itemized deductions increase refund?

It typically only makes sense to itemize if the total of your itemized deductions exceeds the standard deduction. This generally means you'll owe less federal income tax, which can increase your tax refund.

What are the largest itemized deductions?

To better understand the trend pre-TCJA, a closer look at the three largest deductions—state and local taxes, home mortgage interest, and charitable contributions—helps (figure 5). State and local taxes: Nearly all itemizers deduct state and local taxes, up to 99 percent both pre-TCJA and post-TCJA.

What is the best tax write-off?

22 popular tax deductions and tax breaks
  • Saver's credit. ...
  • Health savings account contributions deduction. ...
  • Self-employment expenses deduction. ...
  • Home office deduction. ...
  • Educator expenses deduction. ...
  • Solar tax credit. ...
  • Energy efficient home improvement tax credit. ...
  • Electric vehicle tax credit.

What expenses are no longer deductible?

Expenses such as union dues, work-related business travel, or professional organization dues are no longer deductible, even if the employee can itemize deductions.

How to maximize itemized deductions?

To maximize your deductions, you'll have to have expenses in the following IRS-approved categories:
  1. medical and dental expenses.
  2. deductible taxes.
  3. home mortgage points.
  4. certain interest expenses.
  5. charitable contributions.
  6. certain casualty losses.

What is a tax write-off for a car?

You could write off all or some of your original purchase price after the first year, using the Section 179 deduction. This special deduction is an IRS Tax Code section that allows business owners to write off the allowed purchase price of your car in the year it was purchased or financed.

How much mortgage interest can I deduct?

Taxpayers can deduct the interest paid on qualified residences for up to $750,000 in total mortgage debt (the limit is $375,000 if married and filing separately). Any interest paid on first, second or home equity mortgages over this amount is not tax-deductible.

What are three itemized deductions I could claim?

Home mortgage interest. Income, sales, real estate and personal property taxes. Losses from disasters and theft. Medical and dental expenses over 7.5% of your adjusted gross income.

How can you maximize your tax refund?

4 ways to increase your tax refund come tax time
  1. Consider your filing status. Believe it or not, your filing status can significantly impact your tax liability. ...
  2. Explore tax credits. Tax credits are a valuable source of tax savings. ...
  3. 3. Make use of tax deductions. ...
  4. Take year-end tax moves.

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 2% rule in taxes?

(a) General rule

In the case of an individual, the miscellaneous itemized deductions for any taxable year shall be allowed only to the extent that the aggregate of such deductions exceeds 2 percent of adjusted gross income.

What is an example of a miscellaneous expense?

Some examples of miscellaneous expenses include repair and maintenance, bank charges and fees, office supplies, travel expenses, gifts and donations, professional services, etc.

What are the allowable deductions?

Allowable deductions are all expenses actually incurred by the company in the ordinary course of activities necessary to generate income or other economic benefits for the company (e.g. raw materials and supplies, rent of premises, fuel costs, costs of goods sold, etc.).

How much laundry can I claim without receipts?

It's important to keep in mind that if your laundry claim is over $150 total, or your total claim for work-related expenses is greater than $300, then you'll need to provide written evidence, like diary entries or receipts.

Do I need receipts for everything I write off?

You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses. Additional evidence is required for travel, entertainment, gifts, and auto expenses.

What deductions can I claim?

After you calculate your total gross income for the year, you can deduct certain adjustments to income, such as:
  • student loan interest payments.
  • educator expenses.
  • self-employed health insurance payments.
  • certain alimony payments.
  • contributions to a retirement account.