Tax Deductions You Can Take Without Itemizing

Even if you don’t have enough deductions to itemize, you can still take some deductions.
Tax Deductions You Can Take Without Itemizing
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Anne Johnson
Updated:
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It’s not always beneficial to itemize. In fact, with the Internal Revenue Service’s current standard deduction for 2025 at $15,000 for a single filer and $30,000 for married filing jointly, most Americans who can’t itemize go with the standard deduction.
But that doesn’t mean you have to give up all deductions. There are still some ways to subtract deductions from your gross income. These are called above- and below-the-line deductions. And if you’re not using them, you may be leaving money on the table.

2 Types of Deductions to Reduce Tax Liability

A tax deduction reduces the amount of taxable income, which ultimately reduces your liability. There are two types of deductions. They are above-the-line deductions and below-the-line deductions.

With above-the-line deductions, you don’t itemize. But you can still reduce your gross income. People who take the standard deduction use the above-the-line deduction.

Below-the-line deductions are for those filers who itemize. You may want to itemize if your total deductions are more than your standard deduction.

Above-the-line deductions are found on Schedule 1 IRS Form 1040. According to the IRS, there are several above-the-line deductions you can take.

Contributions to Traditional IRA

A traditional individual retirement account (IRA) can benefit you in two ways. Your contributions grow tax-deferred, and, according to the IRS, depending on your circumstances, it may be an above-the-line deduction. The deduction is limited if you or your spouse are covered by a retirement plan at work or your income exceeds certain levels.
There are restrictions on how much you can contribute to your traditional IRA. For 2025, according to the IRS, the amount is $7,000 per individual or $8,000 if you’re age 50 or older. These amounts remained the same as they were in 2024.
Roth IRAs are not deductible because they are funded by after-tax money.

Alimony Payment Deduction

According to the IRS, alimony payments may be an above-the-line deduction if specific requirements are met. Some requirements are:
  • Payment is in cash (including checks or money orders).
  • Payment made under a divorce or separation instrument to a spouse or former spouse.
  • Spouses don’t file a joint return with each other.
  • Spouses aren’t members of the same household when the payment is made.
There may be other restrictions that apply to you, so consider contacting a tax preparer or the IRS if you have a question.
Neither child support nor voluntary payments are allowed as a deduction.

Contributions to Health Savings Accounts

Health savings accounts (HSAs) can be above-the-line deductions.

For those with a high-deductible health plan, making contributions to an HSA can save you in two ways. Your money grows tax-deferred, and withdrawals for qualified medical expenses are tax-free.

HSA contributions are also tax-deductible. But there is a limit as to how much you can contribute. According to the IRS, the limit for an individual’s contribution is $4,300, and a family’s is $8,550.

Student Loan Interest Is Deductible

Many former students who are paying back student loans can take the standard deduction and an additional deduction on the interest incurred.
There are restrictions, according to the IRS. You must be legally obligated to pay interest on a qualified student loan.

You may deduct the lesser of $2,500 or the amount of interest you actually paid during the tax year. However, the deduction is gradually reduced and eventually eliminated by phase-out. This happens when your modified adjusted gross income (MAGI) amount reaches the annual limit for your filing status.

For example, according to the IRS, if your MAGI is $95,000 or more for a single filer or $195,000 or more for a joint return, you can’t claim the deduction.

Business Use of Your Car or Home

According to the IRS, if you only use your car for business, you can deduct the entire cost of ownership and operation (subject to limits). But if you use it for both business and personal use, you may only deduct the business use.
Depending on which method you use, you can deduct the amount with the standard mileage rate or the actual expense rate. You should consider both before deciding which is best. The standard business and self-employed mileage rate for 2025 is $0.70.
If you are using your home for business, part of its expenses may be eligible for deduction. To be able to take the deduction, you must use a portion of the house for full-time work. If you take work home with you from your regular job or use it for personal purposes, it can’t be deducted. The IRS has a list of circumstances where the home office can be deducted.

Teachers’ Educational Expenses

If you are an eligible educator, the IRS lets you deduct up to $300 for unreimbursed business expenses. This includes classroom materials such as books, computers, supplies, or other equipment that can be used in the classroom.

Take Your Above-the-Line Deductions

Even if you don’t have enough deductions to itemize, you can still take some deductions. The standard deduction is attractive to many taxpayers. So use it while still taking advantage of the additional above-the-line deductions like contributions to traditional IRAs, HSAs, teacher expenses, etc.
The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
Anne Johnson
Anne Johnson
Author
Anne Johnson was a commercial property & casualty insurance agent for nine years. She was also licensed in health and life insurance. Anne went on to own an advertising agency where she worked with businesses. She has been writing about personal finance for 10 years.