13 Tax Breaks You Can Get Without Itemizing

Additional Coverage:

13 Tax Deductions You Can Claim Without Itemizing in 2026 (financebuzz.com)

Unlock Hidden Tax Savings: 13 “Above-the-Line” Deductions You Won’t Want to Miss!

Getting a handle on your taxes is a smart financial move, and it’s not just for tax season! While most folks rely on the standard deduction, there are plenty of other ways to keep more of your hard-earned cash – and many of them don’t even require you to itemize!

We’re talking about “above-the-line” deductions, and they’re like little financial gifts from the IRS. Sure, you probably know about deducting mortgage interest or charitable contributions, but get ready to discover 13 more opportunities to lighten your tax load.

Here’s a rundown of some often-overlooked deductions that can make a real difference:

1. Alimony Payments (Pre-2019 Agreements)

If your divorce or separation agreement was finalized before December 31, 2018, you might be able to deduct those alimony payments. Just be aware this doesn’t apply to newer agreements or those amended to make payments non-deductible. You’ll find this on Schedule 1, Line 19, attached to Form 1040.

2. Self-Employed Retirement Account Contributions

Calling all self-starters! If you’re your own boss, contributions to a SEP-IRA, SIMPLE IRA, or other qualified plans can be deductible.

Look for this on Schedule 1, Line 16. (Deductibility for traditional IRA contributions depends on your income and other retirement coverage.)

3. Early Withdrawal Penalties from Savings

Oops! Did you pull money from a CD or savings account sooner than planned and get hit with a penalty?

Good news: you can actually deduct that penalty! Fill out Form 1040, attach Schedule 1, and add the amount to Line 17 or 18 under Adjustments to Income.

4. Educator Expenses

Teachers, counselors, and principals, listen up! You can deduct up to $300 in unreimbursed expenses (think classroom supplies!)

if you worked at least 900 hours at a qualifying elementary or secondary school. If both spouses are educators, that’s $600!

Report it on your Schedule 1 Form 1040.

5. Health Savings Account (HSA) Contributions

If you’re rocking a high-deductible health plan, contributing to an HSA is a win-win. Your after-tax contributions are deductible, cutting down your tax bill, and withdrawals for medical expenses are tax-free! Report contributions on Schedule 1, Line 13, and include Form 8889.

6. IRA Contributions

This one has a few moving parts, as IRA deduction limits are tied to your income and whether you’re covered by a workplace retirement plan. The IRS has “phase-out” tiers, so check the latest income thresholds for your filing status. Find this on Schedule 1, Line 20.

7. Moving Expenses for Active-Duty Service Members

A nod to our military personnel! Active-duty service members can deduct qualified moving expenses that aren’t reimbursed by the government.

This includes moves to your first post, transfers, or your final move home. Covered expenses include household items, lodging, and travel (excluding meals).

8. Self-Employed Health Coverage

If you’re self-employed, you might be able to deduct premiums for health, dental, and qualifying long-term care insurance for yourself, your spouse, and dependents (even a child under 27, regardless of dependency status!). Claim this adjustment on Schedule 1, Line 17, attached to Form 1040.

9. Certain Business Expenses

While most business deductions require itemizing, there are exceptions for performing artists, armed forces reservists, and some government officials. You might need to meet income qualifications, but if you do, you can include these expenses directly.

File Form 2106 and attach it to your Form 1040. When in doubt, a tax professional can help!

10. Qualified Tips (New for 2025!)

Good news for service workers! Starting in 2025, you can deduct up to $25,000 in tips through 2028. Just be mindful of income thresholds that can phase out this eligibility.

11. New Car Loan Interest (2025-2025 Purchases)

If you bought a new vehicle between 2025 and 2025, you might be able to deduct up to $10,000 in paid interest, provided you’re under the income limit.

12. Student Loan Interest

Paid up to $2,500 in student loan interest? You could get a tax break!

There are income restrictions: if you’re single and earn over $85,000, or married filing jointly with an income over $175,000, this deduction is off the table. Claim it on Schedule 1, Line 21 – and it doesn’t even matter who the loan was for!

13. Your Self-Employment Tax

Self-employment taxes can sting, but here’s a silver lining: you can deduct half of your self-employment tax (which covers Social Security and Medicare, totaling 15.3% of your net self-employment income). That’s a nice chunk of change to keep in your pocket!

The Bottom Line:

You don’t always have to itemize to score valuable tax deductions. These “above-the-line” opportunities can significantly reduce your taxable income and help you keep more money where it belongs – with you!

Boost Your Financial Health: Quick Tips for Everyone

No matter your financial situation, there’s always room to grow your wealth and improve your finances. Here’s how to get started today:

Increase Your Income: If money’s tight, explore side hustles that fit your schedule or look into other legitimate ways to boost your bank account.
Grow What You Have: Time and compound interest are your best friends for wealth building.

Start by understanding your current financial standing to create a solid plan. Consider working with a financial professional to secure your retirement future.

Seize Opportunities: Maximize benefits, discounts, and money-saving deals. For instance, comparing car insurance rates could save you hundreds.

On the flip side, watch out for financial traps that silently drain your accounts!