Saving & Spending Taxes

13 Little-Known Tax Deductions You Can Take In 2026 (No Itemizing Necessary)

Lower your tax bill with these deductions, even if you take the standard deduction.

By Will Vitka

Updated Jan. 28, 2026

Lowering your tax burden is one of the smartest money moves you can make, and it's worth doing even when it's not tax season. One of the easiest ways to reduce what you owe the IRS is to claim deductions, especially the ones that don't require you to itemize.

For most people, the standard deduction will be enough. In 2026, that's $16,100 for individuals and $32,200 for married couples filing jointly. But there are other options that could reduce your taxable income even more. These "above-the-line" deductions are available on top of the standard deduction and can put real money back in your pocket.

Here are 13 deductions worth knowing about.

Alimony payments

If your divorce or separation agreement was finalized before December 31, 2018, and hasn't been changed to make payments non-deductible, you can still deduct alimony. List this on Schedule 1, Line 19 of your Form 1040.

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Retirement contributions for the self-employed

Self-employed individuals can deduct contributions made to SEP-IRAs, SIMPLE IRAs, or other qualified retirement plans. This deduction shows up on Schedule 1, Line 16.

Early withdrawal penalties

If you paid a penalty for taking money out of a CD or another savings account early, that fee may be deductible. This is listed under Adjustments to Income on Schedule 1.

Expenses for educators

Eligible K–12 educators, including teachers, counselors, and principals, can deduct up to $300 in out-of-pocket expenses. If you're married to another educator, that number jumps to $600. You must have worked at least 900 hours during the school year.

Health Savings Account (HSA) contributions

If you're enrolled in a high-deductible health plan, contributions to an HSA are tax-deductible. Qualified withdrawals are tax-free too. Report contributions on Schedule 1, Line 13 and include Form 8889.

IRA contributions

Depending on your income and retirement coverage at work, contributions to a traditional IRA may be deductible. For 2026, income phaseouts start at:

$81,000 for singles covered by a workplace plan
$129,000 for married couples who are both covered
$242,000 if you're not covered, but your spouse is

Moving expenses for active-duty service members

Active-duty military can deduct unreimbursed moving expenses related to changes in duty stations. Covered expenses include transportation, lodging, and storage.

Self-employed health insurance

Self-employed taxpayers may deduct premiums paid for medical, dental, or qualifying long-term care coverage. This also applies to coverage for your spouse, dependents, and children under 27, even if they aren't listed as dependents on your return.

Some business expenses

Certain groups, like qualified performing artists, armed forces reservists, and fee-based government officials, may be able to deduct specific business expenses without itemizing. You'll need to meet income limits and file Form 2106.

Qualified tips

A new deduction available from 2025 to 2028 allows eligible service workers to deduct up to $25,000 in qualified tips. This deduction phases out for higher earners.

New car loan interest

If you purchase a new vehicle between 2025 and 2028, you may be able to deduct up to $10,000 in interest paid on the loan annually. Income limits apply, so not everyone will qualify.

Student loan interest

If you paid up to $2,500 in student loan interest, that amount may be deductible. But again, there are income caps:

No deduction if your income is over $85,000 (single)
No deduction if your income is over $175,000 (married filing jointly)

You can find this deduction on Schedule 1, Line 21.

Self-employment tax

If you're self-employed, you pay the full 15.3% FICA tax, but you can deduct half of it. This deduction helps reduce your overall tax burden, even though the tax must still be paid in full.

Bottom line

These above-the-line deductions are valuable because you don't need to itemize to take advantage of them. Whether you're self-employed, a teacher, or paying off student loans, claiming even a few of these could lower your taxable income and help you keep more of what you earn.

Understanding these deductions could make the difference between overpaying and optimizing your return, and that might just help you reach your financial goals a little faster.

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Editor's Note: Portions of this story were drafted with assistance from generative AI tools. All final creative decisions, edits, and fact checking were done by human writers and editors.