How to Maximize Tax Deductions in 2026

Understanding Itemized vs. Standard Deduction

The first step to maximizing deductions is understanding which option saves you more money. For 2026, the standard deductions are:

If your itemized deductions exceed these amounts, itemizing is the better choice. Otherwise, take the standard deduction.

Interest paid on your home mortgage is deductible up to $750,000 in borrowed funds (or $375,000 if married filing separately).

Combined state income tax, property tax, and sales tax up to $10,000 per year. This cap is especially important for high-tax states.

Cash and non-cash donations to qualified charities are fully deductible. Keep receipts and valuations for non-cash items.

Unreimbursed medical expenses exceeding 7.5% of your adjusted gross income are deductible.

📚 Education Credits: Up to $2,500 per dependent for qualified education expenses
💰 Student Loan Interest: Up to $2,500 in student loan interest paid
🏠 Home Office: If you work from home, deduct a portion of rent/mortgage, utilities, and internet
🚗 Vehicle Expenses: Mileage for business, medical, or charitable purposes
📊 Investment Losses: Capital losses can offset capital gains

Keep detailed records: Receipts, invoices, and bank statements are essential for substantiation.
Time major purchases: Consider making deductible purchases before year-end if you're close to the itemization threshold.
Bundle charitable giving: Bunching donations into one year can help exceed the standard deduction.
Use our deduction estimator: Calculate whether itemizing or taking the standard deduction saves you more.
Consult a tax professional: Complex situations benefit from expert guidance.

Use our free deduction estimator to quickly calculate your total itemized deductions and compare with the standard deduction.

Start Calculating