By Vesela Harris, CPA, EA | JE Tax Advisors LLC
Updated October 19, 2026 | For 2026 federal income tax returns filed in 2027
A deductible expense is easy to overlook when it doesn’t arrive on a tax form. It might be a software subscription on your personal credit card, a health insurance premium, or a donation you forgot to mention to your tax preparer.
The challenge is knowing which expenses qualify and where they belong on your return. Personal deductions, business expenses, and tax credits follow different rules. Here are the areas worth reviewing before you file your 2026 taxes.
First, know which deductions require itemizing
For 2026, the basic standard deduction is:
| Filing status | Basic standard deduction |
|---|---|
| Single or married filing separately | $16,100 |
| Married filing jointly or qualifying surviving spouse | $32,200 |
| Head of household | $24,150 |
Different rules apply to dependents, and additional amounts may apply for age or blindness. Generally, you compare your allowable itemized deductions with your standard deduction and use the more favorable option, subject to filing-status restrictions.
Taking the standard deduction does not prevent you from claiming eligible business expenses, HSA deductions, or certain other deductions.
Personal deductions worth checking
1. Charitable gifts even if you take the standard deduction
Beginning in 2026, eligible taxpayers who do not itemize can deduct up to $1,000, or $2,000 if married filing jointly, for qualifying cash contributions to certain charitable organizations. “Cash” includes qualifying payments by check or credit card. Donated clothing and household goods do not qualify for this particular deduction.
Keep your receipts and confirm that the organization qualifies. Gifts directly to individuals are not deductible charitable contributions.
If you itemize, a different 2026 rule applies: your charitable deduction generally covers only qualifying contributions exceeding 0.5% of your adjusted gross income, with other limits still applying.
For example, with $100,000 of AGI and $2,000 in qualifying gifts, the new floor generally leaves $1,500 before other applicable limitations.
IRS charitable contribution guidance and 2026 estimated-tax instructions
2. State and local taxes
Don’t assume the old $10,000 federal SALT cap still applies to everyone.
For 2026, the cap is $40,400, or $20,200 if married filing separately. It starts decreasing above modified AGI of $505,000, or $252,500 for separate filers, subject to a minimum cap.
If you itemize, review eligible property taxes and state and local income taxes paid during the year. You can elect to deduct qualifying sales taxes instead of income taxes, but not both. That choice is not restricted to residents of states without income tax.
Bring payment records, especially for estimated taxes paid outside payroll.
IRS guidance: 2026 SALT limits
3. Health savings account contributions
An eligible HSA contribution can reduce taxable income without itemizing.
The 2026 limits are $4,400 for self-only coverage and $8,750 for family coverage. Eligible individuals age 55 or older can generally contribute another $1,000.
Employer contributions count toward the limit. Contributions already excluded from income through payroll cannot be deducted again.
Check eligibility before contributing. Medicare enrollment and other coverage, including a spouse’s general-purpose health FSA that covers you, can affect your eligibility. Your contribution limit can also depend on how many months you qualify.
IRS guidance: Health savings accounts
4. Retirement contributions and student loan interest
For 2026, the combined traditional and Roth IRA contribution limit is $7,500, or $8,600 at age 50 or older, subject to compensation requirements. Contributions are not automatically deductible: traditional IRA deductibility depends on income and workplace retirement coverage, while Roth IRA contributions are not deductible.
Student loan interest is another deduction available without itemizing. Eligible borrowers may deduct up to $2,500, subject to income, filing-status, and other requirements.
If someone else paid interest on your behalf, you may still qualify if you are legally obligated on the loan and meet the remaining requirements. A parent’s payment does not automatically make the interest deductible on the parent’s return.
IRS IRA contribution limits, IRA deduction rules, and student loan interest rules
5. Medical expenses and newer personal deductions
Medical expenses can help if you itemize, but only eligible, unreimbursed expenses above 7.5% of AGI count. With $80,000 of AGI and $9,000 of qualifying expenses, the medical deduction is $3,000. Whether itemizing helps depends on your total deductions.
Include qualifying dental and vision costs, not just doctor visits. Expenses reimbursed through insurance or paid with tax-free HSA or FSA funds cannot be deducted again.
Also ask about the newer deductions for eligible seniors, qualified tips, qualified overtime, and qualifying passenger vehicle loan interest. These can apply without itemizing, but each has income limits and specific requirements. “No tax on overtime,” for example, does not mean all overtime pay qualifies.
IRS medical expense rules and additional personal deductions
Deductions small business owners often overlook
6. Recurring expenses and purchases paid personally
Review more than the transactions in your business checking account. Business software, website hosting, payment-processing fees, professional insurance, and qualifying professional services can add up over a year.
For mixed-use expenses, claim only the business portion. If a $100 monthly phone bill has a supportable 60% business use, the business share is $60—not the entire bill.
An otherwise deductible expense doesn’t necessarily stop qualifying because you used personal funds. However, it needs documentation and the correct accounting treatment. Corporations and their owners should address reimbursement procedures rather than simply putting corporate expenses on the owner’s personal return.
Equipment purchases can require depreciation or another permitted expensing method.
IRS guidance: Business income and expenses
7. A qualifying home office
A home office deduction is not automatic just because you work from home. Generally, a self-employed person must use the space regularly and exclusively for business and meet a qualifying business-use test. Exceptions exist for certain daycare and inventory uses.
A dining table used for both family meals and business usually fails the exclusive-use test.
Eligible taxpayers can compare actual expenses with the simplified method, generally $5 per square foot for up to 300 square feet, subject to limitations.
S corporation owners should review the appropriate reimbursement arrangement with their tax professional rather than assume the sole-proprietor method applies to them.
IRS guidance: Business use of your home
8. Business driving and qualifying meals
Keep a mileage log showing dates, destinations, miles, and business purposes. Ordinary commuting generally is not deductible.
For 2026, the optional business mileage rates are:
| Dates of business travel | Rate |
|---|---|
| January 1–June 30 | 72.5 cents per mile |
| July 1–December 31 | 76 cents per mile |
For eligible vehicles, compare mileage with the actual-expense method before choosing. You generally cannot claim mileage and separately deduct gas, repairs, insurance, and depreciation for the same vehicle use.
Qualifying business meals are generally 50% deductible, with exceptions. Keep the receipt and note who attended and the business purpose. Buying lunch during an ordinary workday does not, by itself, make it deductible.
IRS mileage rates and travel, meal, and vehicle rules
9. Self-employed health insurance and retirement plans
Eligible self-employed taxpayers may deduct qualifying health insurance premiums for themselves and certain family members without itemizing. The deduction is limited by qualifying earned income and generally is unavailable for months when you were eligible for subsidized employer coverage, including through a spouse.
For a more-than-2% S corporation shareholder, corporate payment or reimbursement and W-2 reporting require particular attention. Simply paying a personal policy is not enough to assume the deduction is handled correctly.
A SEP IRA, SIMPLE IRA, or solo 401(k) may also provide deductions. Eligibility, contribution calculations, employee coverage, and deadlines differ. Review your options before year-end.
IRS self-employed health insurance instructions, S corporation insurance guidance, and retirement plan limits
10. The qualified business income deduction
Eligible owners of sole proprietorships, partnerships, and S corporations may qualify for a deduction of up to 20% of qualified business income. It is available to eligible taxpayers taking either the standard deduction or itemized deductions.
It is not simply 20% of sales. Income, business type, wages, qualified property, and other limitations can affect the calculation. An S corporation shareholder’s employee wages are not QBI.
The deduction is claimed at the owner level. Accurate books and complete K-1 information help your preparer calculate it correctly.
IRS guidance: Qualified business income deduction
Two things that are not deductions
Ordinary job-search costs: Most individual taxpayers cannot deduct résumé preparation, interview travel, or employment agency fees as federal miscellaneous itemized deductions in 2026. Do not rely on older articles describing these as general write-offs.
A state income tax refund: A refund is not a deduction. Some or all may be taxable if you previously deducted the state income tax and received a federal tax benefit. If you took the standard deduction for the year generating the refund, the state refund generally is not federally taxable.
IRS guidance on miscellaneous deductions and state tax refunds
What to bring to your tax appointment
Along with your tax forms, gather donation receipts, medical expense totals, HSA contribution records, student loan statements, retirement contribution details, business financials, mileage logs, and expenses paid outside business accounts.
A deduction reduces taxable income; it doesn’t reimburse the full purchase price. Spending $1,000 just to get a deduction still means spending money.
If you’re unsure about an expense, keep the record and ask. It’s easier to evaluate a documented expense than reconstruct it after filing.
At JE Tax Advisors LLC, I help individuals and small business owners with tax preparation and planning, including coordinating business returns with the owner’s personal taxes. Based in Auburn, Georgia, I work with clients throughout metro Atlanta and remotely.
Contact JE Tax Advisors or call 470-403-0754 to discuss your tax needs.
This article addresses federal income taxes for 2026 under guidance available as of October 19, 2026. Georgia and other state rules may differ. Eligibility depends on your circumstances.