Sorting through expenses at tax time can feel like decoding a puzzle—some costs save you money, others don’t. This quick guide breaks down which everyday expenses might qualify for deductions, what forms to use, and the pitfalls to avoid. Let’s help you keep more of what you earn.
Tax Deductibles in the US
1. Health Insurance
Health insurance premiums may be deductible if you're self-employed or itemize and exceed 7.5% of AGI. Report on Schedule 1 or A. Keep receipts, insurance statements, and tax forms. Mistakes include assuming all premiums qualify, ignoring AGI limits, or missing documentation. Always double-check for accuracy.
Read full guide: Is health insurance tax deductible in the US?
2. 529 Contributions
Only the account owner in a state with 529 deductions can claim it. Report on your state return with year-end statements and bank records. Mistakes include assuming federal deductibility, using non-qualified plans, or ignoring state rules. Always verify your state’s guidelines before claiming taxes.
Read full guide: Is 529 contributions tax deductible in the US?
3. Political Donations
Political donations aren’t tax-deductible for anyone and don’t need to be reported. No documentation is required, but receipts help for personal tracking. Common misconceptions include treating them like charitable donations or thinking the \$3 election fund checkbox offers a deduction.
Read full guide: Is Political Donations tax deductible in the US?
4. Medicare Premiums
Medicare premiums are deductible if you're self-employed or itemize and exceed the 7.5% AGI threshold. Report on Schedule 1 or A. Keep SSA-1099, premium statements, and payment records. Common mistakes include assuming all premiums qualify or missing the self-employed deduction.
Read full guide: Is Medicare Premiums tax deductible in the US?
5. Gofundme
Only donations to GoFundMe campaigns benefiting 501(c)(3) nonprofits are deductible. Report on Schedule A with a PayPal Giving Fund receipt. Personal fundraiser donations aren’t deductible. Common mistakes include assuming all donations qualify or forgetting to itemize deductions.
Read full guide: Is Gofundme tax deductible in the US?
6. Life Insurance
Life insurance is only deductible for business-provided coverage, pre-2019 alimony, or donated policies to nonprofits. Report on Schedule A, Schedule 1, or business returns. Key errors include assuming all premiums are deductible or not transferring ownership for charitable donations.
Read full guide: Is Life Insurance tax deductible in the US?
7. HOA Fees
HOA fees are only deductible for rental or business use. Report them on Schedule E for rentals or Schedule C for home offices. Keep receipts, HOA statements, and usage calculations. Common mistakes include assuming personal fees are deductible, failing to prorate mixed-use properties, or lacking proper documentation.
Read full guide: Is HOA Fees tax deductible in the US?
8. Home Improvements
Home improvements may be deductible if they’re capital upgrades, energy-efficient, medically necessary, or tied to a home office. Report on Schedule D, A, C, or Form 5695, depending on type. Keep receipts, contracts, payment proof, and doctor’s notes. Mistakes include misclassifying repairs, lacking documentation, or using the wrong tax form.
Read full guide: Is Home Improvements tax deductible in the US?
9. Funeral Expenses
Funeral expenses are only deductible if paid by a taxable estate filing Form 706, not by individuals. Report on Schedule J with receipts for services like embalming, caskets, and burial. Mistakes include trying to deduct on personal returns or claiming reimbursed costs. Only estates over \$13.61M qualify.
Read full guide: Is Funeral Expenses tax deductible in the US?
10. Union Dues
Only self-employed individuals can deduct union dues on Schedule C with proper records like receipts and payment logs. W-2 employees can't deduct them federally, though some states allow it. Common mistakes include assuming deductibility, misreporting, and lacking documentation. Always check federal and state rules.
Read full guide: Is Union Dues tax deductible in the US?
11. Moving Expenses
Only active-duty military members moving under orders can deduct moving expenses using Form 3903. Report it on Schedule 1 (Form 1040). Keep receipts, mileage logs, and invoices. Common mistakes include assuming all moves qualify, skipping Form 3903, or lacking documentation. State rules may differ.
Read full guide: Is Moving Expenses tax deductible in the US?
12. Private School Tuition
Private school tuition isn’t federally deductible unless it’s medically necessary and prescribed by a doctor. If eligible, report it on Schedule A and only deduct amounts exceeding 7.5% of AGI. Common mistakes include assuming general deductibility, lacking documentation, not itemizing, or missing state-specific tax benefits.
Read full guide: Is Private School Tuition tax deductible in the US?
13. 401k Contributions
Traditional 401(k) contributions reduce taxable income automatically for employees and appear on Form W-2. Self-employed individuals must report and deduct them on Schedule 1. Keep W-2s or contribution records. Common mistakes include assuming Roth 401(k) contributions are deductible and not maximizing employer matches.
Read full guide: Is 401k Contributions tax deductible in the US?
14. Alimony
Alimony is only tax-deductible if the divorce agreement was signed before January 1, 2019, and meets IRS conditions. Report it on Schedule 1, Line 18a, and include your ex-spouse’s SSN. Common mistakes include deducting post-2018 alimony or misclassifying child support as deductible. Keep payment records and legal documents.
Read full guide: Is Alimony tax deductible in the US?
15. Credit Card Interest
Only business-related credit card interest is tax-deductible, not personal interest. Self-employed individuals can claim it on Schedule C with proper documentation. Mistakes include assuming all interest is deductible, mixing personal and business expenses, and lacking records. Accurate tracking and clear separation of charges are essential for compliance.
Read full guide: Is Credit Card Interest tax deductible in the US?
16. Child Support
Child support is not tax-deductible for the payer and not taxable for the recipient. It isn’t reported on tax returns. Common mistakes include assuming it's deductible or that paying it grants dependent claims. Only the custodial parent can claim dependents unless they transfer the right using Form 8332.
Read full guide: Is Child Support tax deductible in the US?
17. Church Donations
Church donations are tax-deductible if you itemize deductions and give to a qualified 501(c)(3) church. Report them on Schedule A (Form 1040). Keep receipts or written acknowledgments, especially for donations over \$250. Common mistakes include not itemizing, lacking documentation, or deducting the full amount when goods were received.
Read full guide: Is Church Donations tax deductible in the US?
18. Closing Costs
Most closing costs aren’t tax-deductible, but mortgage points and real estate taxes may be if you itemize deductions. Report them on Schedule A using your Closing Disclosure and Form 1098. Mistakes include assuming all fees are deductible or not distinguishing between deductible costs and those added to your home’s basis.
Read full guide: Is Closing Costs tax deductible in the US?
19. Legal Fees
Legal fees are only tax-deductible if they’re related to business, rental, or income-producing activities. Report them on Schedule C, E, F, or Schedule 1 depending on the case. Personal legal expenses like divorce or injury claims aren't deductible. Keep detailed records to justify your claim.
Read full guide: Is Legal Fees tax deductible in the US?
Don't lose deductible receipts again.
Knowing what you can and can’t deduct is key to avoiding surprises come tax time. With the right documentation and a little prep, you can confidently claim the deductions you’re entitled to—and skip the ones you’re not.
Need help finding deductible receipts buried in your inbox? Let Receiptor AI extract, organize, and export them for you—automatically.
