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With the standard deduction higher than ever \u2014 $32,200 for married couples filing jointly and $16,100 for single filers \u2014 most Americans no longer itemize. But that does not mean your opportunity to reduce taxable income disappears.<\/p>\n
Find Out: What 2026 Senior Tax Deduction Means for Social Security and Retirement Planning\u00a0<\/strong><\/p>\n Read More: 5 Low-Effort Ways To Make Passive Income (You Can Start This Week)\u00a0<\/strong><\/p>\n Many taxpayers assume that choosing the standard deduction eliminates any additional write-offs. That misconception costs money, according to Randall Brody, an IRS enrolled agent and founder of Tax Samaritan.<\/p>\n \u201cThe standard deduction simply replaces itemized deductions such as mortgage interest or state taxes. It does not eliminate adjustments that reduce income before taxable income is even calculated,\u201d he explained.<\/p>\n While above-the-line adjustments are available to both those who itemize and those who take the standard deduction, there are potential limitations for certain taxpayers, such as high earners, said John A. Madison, CPA. Here are five deductions to consider.<\/p>\n Retirement savings remain one of the most powerful ways to lower income even if you take the standard deduction, according to Gene Bott, a CPA and partner at Kevin O\u2019Leary\u2019s Tax Hive.<\/p>\n This includes employer-funded IRAs, self-employment retirement plans and 401(k) plans. The exception is Roth retirement accounts, which don\u2019t reduce your AGI, Bott said.<\/p>\n Brody said it\u2019s common for taxpayers to delay retirement contributions until year-end without realizing they still have time to fund certain accounts and reduce prior-year taxable income. For higher earners, this can mean the difference between staying within a tax bracket or spilling into the next.<\/p>\n Explore More: Maximize Your Tax Refund by Avoiding This Common Mistake\u00a0<\/strong><\/p>\n If you have a high-deductible health plan, a health savings account (HSA) remains one of the most efficient tax tools to reduce your AGI, Brody said. That reduction can then make you eligible for other deductions or tax credits.<\/p>\n Madison said HSAs offer \u201ca triple tax benefit: The contribution is deductible, the growth is tax-deferred and qualified withdrawals are tax-free.\u201d<\/p>\n If you use the funds for qualifying healthcare expenses, the funds come out tax-free, as well.<\/p>\n Standard deduction filers can also deduct student loan interest. According to the IRS, taxpayers can deduct \u201cthe lesser of $2,500 or the amount of interest you actually paid during the year.\u201d It does phase out at certain income levels, however.<\/p>\n<\/p><\/div>\n Bott added that taxpayers who are in school should be aware of the American Opportunity Tax Credit and the Lifetime Learning Credit. Credits can be even more powerful than deductions, Brody added, \u201cbecause they reduce tax liability dollar for dollar.\u201d<\/p>\n While charitable deductions typically require itemizing, 2026 introduces a new deduction for charitable contributions made in cash for non-itemizers. \u201cThis deduction is limited to $1,000 for single taxpayers and $2,000 for joint filers,\u201d Madison said.<\/p>\n This creates an additional opportunity for taxpayers who previously saw no benefit from smaller annual gifts.<\/p>\n Business owners and freelancers have even more flexibility because they can deduct one-half of self-employment tax, health insurance premiums paid for themselves and their families and certain business-related adjustments that reduce overall taxable income before the standard deduction is even applied, Madison said.<\/p>\n Qualified business income deductions may also apply for eligible taxpayers.<\/p>\n The biggest mistake, Madison said, is to automatically assume that there are no additional deductions. \u201cAlways review the eligible above-the-line deductions that are available to see if you qualify. The standard deduction simplifies filing, but it does not eliminate opportunity.\u201d<\/p>\n