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IRS Deductions Guide: How to Cut Your Tax Bill in 2025

If you want to keep more of what you earn, the first place to look is your tax return. The IRS lets you subtract a lot of everyday expenses from your income, lowering the amount you actually pay tax on. Below you’ll find the most common deductions, quick rules, and a few pro tricks to make sure you’re not leaving money on the table.

Common Deductions You Can Claim

Most people know about the standard deduction, but if you itemize you can pull off several extra write‑offs. Here are the ones that show up year after year.

  • Mortgage interest – If you own a home, the interest you pay on your mortgage is deductible up to the limits set by the IRS.
  • State and local taxes (SALT) – You can deduct up to $10,000 of state income, sales, and property taxes combined.
  • Charitable gifts – Cash or goods given to qualified charities count, as long as you keep receipts.
  • Medical expenses – Anything that pushes your out‑of‑pocket costs over 7.5% of your adjusted gross income can be deducted.
  • Education costs – Tuition and fees for yourself, your spouse, or your dependents may qualify under the Lifetime Learning Credit or the American Opportunity Credit.
  • Business expenses – If you’re self‑employed, home‑office costs, supplies, travel, and vehicle mileage are all fair game.

It’s easy to miss a deduction if you don’t keep good records. A simple spreadsheet or an app that snaps receipts can save you a few hundred dollars each year.

Tips to Maximize Your Write‑offs

Getting the most out of deductions isn’t just about knowing what’s available; it’s about timing and strategy.

  • Bundle expenses – If you’re close to a deduction threshold, consider paying two years’ worth of medical bills or charitable gifts in the same tax year.
  • Track mileage daily – One missed trip can add up. Log each drive with purpose, distance, and date; the IRS allows 65.5 cents per mile for 2025.
  • Review the standard vs. itemized choice – The standard deduction is $13,850 for single filers and $27,700 for married filing jointly in 2025. Only itemize if your total deductions exceed those numbers.
  • Use retirement contributions – Contributing to a Traditional IRA or a 401(k) reduces taxable income directly, acting like a deduction before you even file.
  • Don’t forget the above‑the‑line deductions – Educator expenses, student loan interest, and health savings account contributions come off your income without needing to itemize.

One mistake many make is waiting until the last minute to gather documents. The IRS can audit you, and missing paperwork means losing the deduction. Set a reminder to sort receipts every month.

Finally, if you feel uncertain about any line on your return, a quick chat with a tax professional can pay for itself. They’ll spot missed deductions, advise on audit risk, and keep you compliant.

Bottom line: the right mix of record‑keeping, timing, and a clear view of what the IRS allows can shave a good chunk off your tax bill. Use these tips for the 2025 filing season and watch your refund grow.