Tax deductions explained: what actually lowers your bill

Standard deduction or itemized deductions

Every filer gets a choice: take the flat standard deduction for your filing status, or itemize your actual deductible expenses. You take whichever is larger; you do not get both.

Most W-2 households come out ahead with the standard deduction. Itemizing usually wins when you pay mortgage interest, have large state and local taxes, gave significant charitable gifts, or had heavy out-of-pocket medical costs.

• Mortgage interest reported on Form 1098
• State and local income or sales taxes plus property taxes (capped)
• Charitable cash and non-cash donations with receipts
• Medical and dental costs above the income threshold

Deductions you can claim without itemizing

Some deductions come off your income before the standard-versus-itemized decision, so you keep them either way.

• Student loan interest reported on Form 1098-E
• Traditional IRA and HSA contributions you qualify for
• Educator classroom expenses
• Self-employed health insurance premiums
• One half of self-employment tax

Self-employed write-offs people miss

If you drive, freelance, sell online, or run a business, your expenses are the difference between a painful bill and a fair one. These are the ones we most often add for new clients.

• Business mileage, tolls, and parking with a mileage log
• The work-use share of your phone and internet
• Platform, app, and payment-processing fees
• Supplies, software, and equipment used for the business
• A qualifying home-office space used regularly and exclusively for work
• The qualified business income deduction on your net profit

Keep the records, not just the memory

A deduction is only as good as the proof behind it. Save receipts, bank and card statements, mileage logs, and year-end platform summaries. Upload them with your return and we will sort out what belongs where.