The Complete Guide to Tax Deductions
2026 | 7 min read | By My Tax Service Team
Are you leaving money on the table? Here are the most commonly missed tax deductions that could significantly reduce your tax bill.
Standard Deduction vs. Itemizing
For 2025 returns, the standard deduction is $15,000 (single), $30,000 (married filing jointly), and $22,500 (head of household). You should itemize if your qualifying expenses exceed these amounts.
Above-the-Line Deductions (Even If You Take Standard)
These deductions reduce your adjusted gross income regardless of whether you itemize:
- Student loan interest: Up to $2,500
- Educator expenses: Up to $300 for teachers
- HSA contributions: $4,150 (individual) or $8,300 (family)
- Self-employment tax: Deduct 50% of SE tax
- Traditional IRA contributions: Up to $7,000 ($8,000 if 50+)
Commonly Missed Itemized Deductions
Medical Expenses
Medical expenses exceeding 7.5% of your AGI are deductible. This includes insurance premiums (if not employer-paid), prescriptions, dental work, vision care, and medical travel.
Charitable Contributions
Cash donations are deductible up to 60% of AGI. Do not forget non-cash donations (clothing, furniture) and mileage driven for volunteer work (14 cents/mile).
State and Local Taxes (SALT)
You can deduct up to $10,000 in state and local taxes. In Texas, this means property taxes and sales taxes (since there is no state income tax).
Home Office Deduction
Self-employed individuals can deduct $5/sq ft (up to 300 sq ft) using the simplified method. This is one of the most underutilized deductions for freelancers and gig workers.
Texas-Specific Considerations
Since Texas has no state income tax, you can instead deduct state sales taxes on Schedule A. The IRS provides tables based on your income and family size, or you can track actual receipts. Use our tax calculator to see the impact on your bottom line.