Tax rules change — and 2026 brings a few important updates taxpayers need to know. This guide highlights the smartest (and commonly missed) deductions for U.S. filers in 2026: who qualifies, practical filing tips, dollar limits to watch, and quick action steps to keep more of your money. Where a rule changed or is materially time-sensitive, I cite authoritative sources (IRS or major tax guidance).
- Standard deduction amounts were adjusted for 2026; compare standard vs itemized before you file. :contentReference[oaicite:0]{index=0}
- New/returning options (starting 2026) — limited charitable deduction for non-itemizers — plan timing of donations. :contentReference[oaicite:1]{index=1}
- Home-office simplified deduction remains available for self-employed filers (use the IRS $5/sq ft simplified rate for 2025 guidance — watch IRS updates for final 2026 guidance). :contentReference[oaicite:2]{index=2}
- State & local tax (SALT) cap rules were changed recently — check limits for your filing year. :contentReference[oaicite:3]{index=3}
Table of Contents
- Standard deduction vs itemizing (2026 amounts & when to choose)
- Charitable deductions: itemizers and the new non-itemizer option (2026)
- Mortgage interest & property tax (what still qualifies)
- State & local taxes (SALT) — new cap & practical notes
- Home office deduction — simplified vs regular method
- Above-the-line deductions: IRA, HSA, student loan interest & educator expenses
- Business deductions & Qualified Business Income (QBI) updates
- Medical, casualty, and casualty-loss rules to watch
- Filing tips, documentation, and quick checklist
- FAQs
1) Standard deduction vs itemizing (2026)
For many taxpayers the standard deduction is still the right choice — but inflation adjustments changed the thresholds for 2026, so run the numbers. The IRS announced inflation adjustments for tax year 2026 (the year you'll file in 2027), including increases to the standard deduction amounts. Always compare the total of Schedule A itemized deductions to the standard deduction to decide which lowers your taxable income most. :contentReference[oaicite:4]{index=4}
2) Charitable donations — big change for 2026
Important: starting in 2026 a limited charitable deduction for non-itemizers returns (rules and dollar caps vary by filing status). If you planned end-of-year gifts in late 2025, consider timing them with this change in mind: in many cases giving in 2026 can let non-itemizers claim a small deduction. For larger charitable strategies, itemizing is still the way to capture full value. :contentReference[oaicite:5]{index=5}
3) Mortgage interest & property tax
Mortgage interest on qualified home acquisition debt is still deductible for itemizers (subject to limits depending on when the mortgage originated). Property taxes remain deductible as an itemized deduction, but remember the SALT cap discussed below may limit the benefit for many filers. Keep mortgage statements (Form 1098) and property tax receipts for documentation. :contentReference[oaicite:6]{index=6}
4) State & local taxes (SALT): what changed
The SALT deduction cap was materially changed in recent legislation; for tax years 2025 and 2026 the cap is substantially higher than the old $10,000 limit (check your filing year for the exact cap). Taxpayers in high-tax states should review the updated cap and plan property tax or state tax payments strategically. :contentReference[oaicite:7]{index=7}
5) Home office deduction — simplified method remains useful
Self-employed taxpayers can use the simplified home-office deduction to avoid depreciation recapture and the burden of allocating expenses. The IRS simplified method uses a prescribed rate per square foot (the IRS published $5/sq ft as the prescribed rate for recent guidance — up to 300 sq ft). If your home office is large or your actual expenses are high, run both methods and pick the larger deduction; otherwise the simplified method is clean and safe. :contentReference[oaicite:8]{index=8}
6) Above-the-line deductions everyone should check
- Traditional IRA contributions: may be deductible depending on income and whether you (or a spouse) are covered by a retirement plan at work.
- Health Savings Account (HSA): contributions are deductible and grow tax-free — HSAs are one of the best tax-advantaged tools for Americans who qualify. Maximize employer and personal contributions if eligible.
- Student loan interest: still deductible up to the annual limit for eligible filers (phaseouts apply by income).
- Educator expenses: teachers and eligible educators can deduct certain classroom costs above-the-line.
7) Business deductions & QBI (Qualified Business Income)
If you run a business, don’t miss ordinary and necessary business expenses (home office, supplies, mileage, business subscriptions). The Qualified Business Income (QBI) deduction has been subject to legislative change — recent guidance preserved and adjusted the QBI rules and added a minimum deduction for small QBI amounts starting in 2026. If you have pass-through business income, work with a tax pro to capture the maximum QBI benefit. :contentReference[oaicite:9]{index=9}
8) Medical expenses, casualty losses & special situations
Large unreimbursed medical expenses remain potentially deductible as an itemized deduction once they exceed the adjusted AGI threshold (check the current threshold for the tax year you file). Casualty losses are more limited since the 2017 tax law changes but can be deductible in disaster areas under special rules. Keep records and consult IRS Schedule A instructions when in doubt. :contentReference[oaicite:10]{index=10}
9) Filing tips & documentation
- Keep receipts, Form 1098 (mortgage interest), donation acknowledgements, and property tax statements for at least three years.
- Use the IRS “credits & deductions” pages for the latest guidance before filing. :contentReference[oaicite:11]{index=11}
- When in doubt, get a transcript of your return or consult a CPA — tax law changes in 2025–2026 added a few moving parts that can affect high-income or complex filers.
10) Quick checklist (before you file)
- Compare standard deduction vs itemizing with Schedule A totals.
- Collect donation receipts; consider timing gifts for 2026 if you’re eligible for the non-itemizer charitable option. :contentReference[oaicite:12]{index=12}
- Confirm mortgage interest (Form 1098) and property tax amounts.
- Run business expense totals and confirm QBI eligibility (if self-employed). :contentReference[oaicite:13]{index=13}
- Make sure HSA and IRA contributions are recorded and deducted on your return if eligible.
FAQs
Q: Should I bunch charitable donations to itemize one year?
Bunching (giving multiple years’ worth of donations into a single year) can make sense if it pushes you above the standard deduction threshold — but with the return of a small non-itemizer charitable deduction in 2026, evaluate both strategies with your expected gift amounts. :contentReference[oaicite:14]{index=14}
Q: Is the home office deduction gone for employees?
Employee unreimbursed business expenses (including a home office) are generally not deductible for most W-2 employees under post-2017 rules. Self-employed taxpayers can still claim home office deductions subject to the rules described above. :contentReference[oaicite:15]{index=15}
Q: Where do I check official IRS changes before filing?
Use the IRS newsroom and the “Credits and Deductions for Individuals” page for authoritative updates and links to forms/instructions. :contentReference[oaicite:16]{index=16}
Sources: IRS newsroom — tax year 2026 inflation adjustments. :contentReference[oaicite:17]{index=17} IRS page: Credits & Deductions for Individuals. :contentReference[oaicite:18]{index=18} IRS simplified home office method details. :contentReference[oaicite:19]{index=19} Recent coverage of the charitable non-itemizer change. :contentReference[oaicite:20]{index=20} SALT cap changes and guidance. :contentReference[oaicite:21]{index=21}
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