Tax write-offs, formally called deductions, reduce the amount of income you pay taxes on. Some are available to nearly everyone, others only to self-employed workers or business owners, and a few apply to specific groups like educators or military reservists. Here’s a practical breakdown of the deductions most likely to put money back in your pocket.
The Standard Deduction vs. Itemizing
Before diving into specific write-offs, you need to understand the fork in the road every filer faces. You either take the standard deduction, a flat amount based on your filing status, or you itemize by listing individual deductions and adding them up. You pick whichever option is larger.
For 2026, the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for head of household. If your itemized deductions don’t exceed those numbers, the standard deduction gives you a bigger tax break automatically. Most people end up taking it. But certain deductions, like the self-employed health insurance deduction, are taken “above the line,” meaning you get them regardless of whether you itemize. Those are especially valuable.
Write-Offs Available to Most Filers
Even if you’re a W-2 employee taking the standard deduction, several deductions and adjustments can still lower your tax bill.
- Traditional IRA and 401(k) contributions. Money you put into a traditional retirement account reduces your taxable income for the year. Employer-sponsored 401(k) contributions come out of your paycheck before taxes are calculated, so the deduction happens automatically.
- Student loan interest. You can deduct up to $2,500 in student loan interest per year, even without itemizing. Income limits apply, but most borrowers in repayment qualify.
- Health savings account (HSA) contributions. If you have a high-deductible health plan, contributions to an HSA are deductible above the line.
- Educator expenses. Eligible K-12 teachers can deduct qualified out-of-pocket classroom expenses as an adjustment to gross income, no itemizing required.
- Charitable contributions. Donations to qualified nonprofits are deductible if you itemize. Cash donations are typically deductible up to 60% of your adjusted gross income.
- Mortgage interest. If you itemize, you can deduct interest on up to $750,000 of mortgage debt on your primary or secondary home.
- State and local taxes (SALT). Property taxes and either state income taxes or state sales taxes are deductible if you itemize, capped at $10,000 combined.
- Medical expenses. Out-of-pocket medical and dental costs that exceed 7.5% of your adjusted gross income are deductible if you itemize.
Why W-2 Employees Have Fewer Options
If you’re a salaried or hourly employee, you may have noticed that work-related costs like uniforms, tools, or a home office aren’t on the list above. That’s because the IRS eliminated the deduction for unreimbursed employee expenses starting in 2018. You can no longer write off things like work travel, professional dues, or equipment your employer didn’t pay for.
A handful of exceptions exist. Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses can still deduct certain job costs using Form 2106. Everyone else needs to ask their employer for reimbursement instead.
Self-Employment and Business Deductions
If you work for yourself, whether freelancing, running a side business, or operating a full-time company, the list of available write-offs expands dramatically. Business expenses reduce your self-employment income, which lowers both your income tax and your self-employment tax (the 15.3% you pay to cover Social Security and Medicare).
Here are the most common categories:
- Home office. If you use part of your home exclusively and regularly for business, you can deduct a portion of your rent or mortgage interest, utilities, insurance, and maintenance. The simplified method lets you deduct $5 per square foot, up to 300 square feet, for a maximum of $1,500. The regular method requires tracking actual expenses and calculating the percentage of your home used for work. This deduction is only available to self-employed individuals, not W-2 employees.
- Vehicle expenses. You can deduct the business use of your car using either the standard mileage rate (70 cents per mile for 2025) or actual expenses like gas, insurance, and repairs. You need to track your mileage either way, because personal driving doesn’t count.
- Health insurance premiums. Self-employed individuals can deduct premiums for medical, dental, vision, and qualifying long-term care insurance for themselves, their spouse, and their dependents. This is an above-the-line deduction, so you don’t need to itemize. One important restriction: you can’t take the deduction for any month you were eligible to participate in a subsidized health plan through a spouse’s employer or another source, even if you didn’t enroll.
- Retirement plan contributions. Contributions to a SEP-IRA, SIMPLE IRA, or solo 401(k) are deductible. These plans allow significantly higher contribution limits than a traditional IRA, making them one of the most powerful tax-reduction tools for self-employed workers.
- Business insurance. Premiums for liability insurance, professional indemnity, and other business-related coverage are fully deductible.
- Supplies and materials. Anything you buy to run your business, from software subscriptions to printer paper to raw materials, counts as a deductible expense.
- Business travel. Airfare, hotels, rental cars, meals (subject to percentage limits), and incidental costs like baggage fees and tips are deductible when you travel primarily for business purposes.
- Interest on business loans. Interest paid on loans used for business purposes, including business credit cards, is deductible.
- Professional services. Fees paid to accountants, attorneys, consultants, and other professionals for business-related work are write-offs.
- Startup costs. If you launched a new business, you can deduct up to $5,000 in startup costs in your first year, with the remainder amortized (spread out) over 15 years.
- Licenses and taxes. Business license fees, permits, and certain taxes related to your business operations are deductible.
- Rent. If you rent office space, a studio, a warehouse, or equipment for your business, the cost is fully deductible.
The Qualified Business Income Deduction
Self-employed individuals and owners of pass-through businesses (sole proprietorships, partnerships, S corporations, and most LLCs) may also qualify for the qualified business income deduction, often called the QBI deduction. This lets you deduct up to 20% of your qualified business income from your taxable income. It’s separate from your business expense deductions and applies on top of them. Income thresholds and limitations apply, particularly for service-based businesses like law, consulting, and healthcare once your taxable income exceeds certain levels.
How to Claim These Deductions
Where a deduction shows up on your tax return depends on what kind it is. Above-the-line deductions like student loan interest, HSA contributions, and the self-employed health insurance deduction go on Schedule 1 of your Form 1040. Itemized deductions like mortgage interest, charitable giving, and SALT go on Schedule A. Business expenses for sole proprietors and single-member LLCs go on Schedule C.
The single most important habit for maximizing your write-offs is keeping records throughout the year. Save receipts, use a dedicated business bank account if you’re self-employed, and track mileage in real time rather than estimating at year-end. The IRS requires that deductions be “ordinary and necessary” for your business or situation, and documentation is how you prove that if you’re ever questioned.