Doing taxes isn’t exactly easy, and “tax deduction” brings to mind piles of receipts and complicated calculations, just to save a few bucks. Here’s the good news: You don’t need to itemize deductions to take advantage of valuable tax breaks and reduce your taxable income.
Every year at tax time, you need to choose between claiming the standard deduction and itemizing your deductions. Most of us take the standard deduction because it’s easier — and for most people, it’s a better deal right now.
But here’s what a lot of people don’t realize: Even if you don’t itemize, the IRS still lets you knock down your taxable income with certain “above-the-line” deductions. These are automatic wins if you qualify.
Here are five tax deductions you can claim, even if you’re taking the standard deduction like most U.S. taxpayers.
These deductions, found on Schedule 1 of IRS Form 1040, reduce your adjusted gross income, or AGI, which means a lower tax bill for you.
Learn more: Looking for more tax breaks? Here are popular tax credits you don’t want to overlook.
Saving for your retirement is a smart move for the future — and it can benefit you now, too. Your IRA contributions grow tax-deferred, meaning you can delay paying taxes until you withdraw the money. Plus, contributions to a traditional IRA may be tax-deductible in the year you put the money into your IRA account (contributions to Roth IRAs are funded with after-tax money, which means you can’t deduct them).
Anyone who puts money into a traditional IRA may qualify for this above-the-line deduction. The only restriction on deducting IRA contributions comes into play if you or your spouse have a retirement plan at work, such as a 401(k). In that situation, there are income limits that may limit your ability to deduct your IRA contributions.
Tax tip
You have until the April 15, 2025, tax deadline to contribute to a traditional IRA for 2024. It’s one of the few ways to reduce your tax bill after the year ends.
To put it another way, if you don’t have a retirement plan at work (and your spouse doesn’t either), then there are no income limits on deducting your IRA contributions.
You’re allowed to contribute up to $7,000 (or $8,000 if you’re 50 or older) each year in 2024 and 2025. And you can expect a deduction for the full contribution amount if your income is below the phaseout range.
Here are the income limits for deducting contributions to a traditional IRA if you (or your spouse) are covered by a workplace plan, for 2024 and 2025. (See the IRS instructions for calculating modified adjusted gross income (MAGI) for traditional IRAs.)
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Filing status
Modified adjusted gross income (2024 tax year)
Modified adjusted gross income (2025 tax year)
Deduction amount
Single, head of household, or married filing separately (didn’t live with spouse at all during the year)
Up to $77,000
Up to $79,000
Full deduction
$77,000 to $87,000
$79,000 to $89,000
Partial deduction
$87,000+
$89,000+
No deduction
Married filing jointly (you’re covered by a workplace plan)
Up to $123,000
Up to $126,000
Full deduction
$123,000 to $143,000
$126,000 to $146,000
Partial deduction
$143,000+
$146,000+
No deduction
Married filing jointly (your spouse is covered by a workplace plan)
Up to $230,000
Up to $236,000
Full deduction
$230,000 to $240,000
$236,000 to $246,000
Partial deduction
$240,000+
$246,000+
No deduction
Married filing separately (lived with spouse at any time the year
Up to $10,000
Up to $10,000
Partial deduction
$10,000+
$10,000+
No deduction
Remember that, if you (and your spouse if you’re married) are not covered by an employer retirement plan, your contributions are fully deductible regardless of your income.
Learn more: 2024 and 2025 tax brackets and current federal income tax rates
If you’ve got a high-deductible health plan (HDHP), making contributions to a health savings account can save you some cash now and later. HSA contributions are tax-deductible, your money grows tax-deferred and withdrawals for qualified medical expenses are tax-free.
The deduction limits for HSA contributions in 2024 (for tax returns filed in 2025) are:
Up to $4,150 for individuals
Up to $8,300 for families
People 55+ can contribute an extra $1,000
Tax tip
You can contribute to your HSA for the 2024 tax year all the way up until the April 15, 2025, tax deadline. It’s one of the few ways to reduce your tax bill even after the year ends.
The deduction limits for HSA contributions in 2025 (for tax returns filed in 2026) are:
Up to $4,300 for individuals
Up to $8,550 for families
People 55+ can contribute an extra $1,000
To qualify for HSA contributions, you must be enrolled in a qualifying HDHP and can’t have coverage for another group policy.
Tax tip
If your employer contributes to your HSA, that amount counts toward your annual contribution limit.
Student loan payments may sting, but there’s a silver lining. You can deduct up to $2,500 of interest paid on federal and private student loans each year.
To qualify for this full deduction, you must:
have paid interest on a student loan for yourself, a spouse or a dependent.
have taken out the loan to pay for qualified education expenses.
have a modified adjusted gross income (or MAGI) below the limits (see below).
Not be claimed as a dependent by someone else.
Here are the income limits for the student loan interest deduction for 2024 tax returns, filed in 2025 (see the IRS instructions for calculating MAGI for the student loan interest deduction):
Filing status
Modified adjusted gross income for 2024
Deduction amount
Single, head of household, or qualifying surviving spouse
$0 to $80,000
Full deduction
$80,000 to $95,000
Partial deduction
$95,000+
No deduction
Married filing jointly
$0 to $165,000
Full deduction
$165,000 to $195,000
Partial deduction
$195,000 or more
No deduction
Married filing separately
N/A
No deduction
It’s not uncommon for teachers to use their own money for classroom supplies. Fortunately, eligible educators can deduct at least some of these costs.
K-12 teachers, instructors, counselors and principals working at least 900 hours a year qualify for this deduction of up to $300 (or $600 for married couples if both spouses are educators).
This educator expense deduction covers work-related expenses, such as classroom technology, books, supplies, professional development courses and other necessary materials.
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What about freelancers, gig workers, and entrepreneurs? If you’re self-employed, there are several business tax deductions to help lower your taxable income on Schedule C.
But then, when you’re filling out your tax return and you enter your net business income from Schedule C over on your Form 1040, you, too, may qualify for some above-the-line deductions (which you enter on Form 1040’s Schedule 1).
Three of the most important ones are:
Self-employment tax deduction: The rule is that if you’re self-employed, you pay both the employer and employee portions of Social Security and Medicare taxes. Luckily, 50 percent of this tax is deductible.
Retirement contributions: Contributions to your SEP IRA, SIMPLE IRA or solo 401(k) plans generally are deductible.
Health insurance deductions: if you make payments for your health insurance (and aren’t eligible for an employer’s plan), you can deduct 100 percent of premiums for yourself, your spouse or your dependents.
Taxes aren’t fun, but saving money is. You don’t need complicated itemized deductions to trim your tax bill. Above-the-line deductions are available whether you claim the standard deduction or itemize your deductions, making it easy to keep more of your hard-earned cash.
These deductions add up quickly, whether you’re paying off student loans, putting money toward retirement or covering health expenses. A few minutes checking your eligibility could mean hundreds or even thousands of dollars in tax savings.
