What Tax Deductions Are Still Available to Me?
Tax reform measures are enacted frequently by Congress, which makes it hard for U.S. taxpayers to know which deductions are currently available to help lower their tax liability.
Taxpayers may be able to take deductions for student-loan interest, out-of-pocket charitable contributions, health savings account, home mortgage interest, contributions to a traditional IRA, and deductions for self-employed taxpayers (SE tax, SE health insurance, SE qualified retirement plan contributions). Of course, some tax deductions are limited or disappear as adjusted gross income increases.
Another key deduction is unreimbursed medical and dental expenses. For tax years 2025 and 2026, you may only deduct medical and dental expenses to the extent that they exceed 7.5% of your AGI and were not reimbursed by your insurance company or employer.
The One Big Beautiful Bill Act (OBBBA) of 2025 made permanent the changes to the deduction for interest paid on home equity loans and lines of credit made by the Tax Cuts and Jobs Act of 2017, provided they are used to buy, build, or substantially improve the taxpayer’s home that secure the loan.
Interest on a new home mortgage remains limited to the interest paid on a maximum of $750,000 ($375,000 if married filing separately (MFS)) of a new mortgage taken out after
December 14, 2017. Taxpayers with a mortgage taken out before December 15, 2017
can continue to claim home mortgage interest on up to $1 million ($500,000 if MFS)
going forward. The OBBBA continues the $1 million ($500,000 if MFS) limit for refinanced loans originally obtained before December 15, 2017.
Personal casualty and theft losses are no longer generally deductible. The only exception is for certain losses in federally declared disaster areas.
The end of the year is the time to take one last good look to determine whether you qualify for a tax credit or deduction or whether you’re close to the cutoff point. If you're not close, you may opt to postpone incurring some medical or other expenses until the following year, when you may be able to deduct them. On the other hand, if you're only a little short of the threshold amount, you may want to incur additional expenses in the current tax year. With a little preparation and some help from a qualified tax professional, you may be able to lower your income taxes this year. You just have to plan ahead.
The information in this newsletter is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2026 Broadridge Financial Solutions, Inc.