14 Items You Could Be Itemizing to Lower Your Tax Bill

Tax season doesn’t have to be a stressful time if you know what deductions to claim. While many people choose the simplicity of the standard deduction, others can potentially lower their tax bills by itemizing their expenses. If you’ve had a year filled with major expenses, it might be worth taking the extra time to itemize, especially since you can claim a wide variety of expenses that can significantly reduce your taxable income.

Standard Deduction vs. Itemizing

The standard deduction is a set amount that the IRS allows you to deduct from your taxable income without needing to list specific expenses. For 2025, the IRS standard deduction is $15,750 for single filers, $31,500 for married filing jointly, $15,750 for married filing separately, and $23,625 for heads of household, with additional amounts for seniors and the blind. Itemizing allows you to deduct specific expenses, which may result in a lower taxable income if they total more than the standard deduction.

Here are 14 items that you could be itemizing on your tax return, and they might help lower your tax bill. 

1. Mortgage Interest
   Interest paid on a mortgage for a primary or secondary residence may be deductible on loan balances up to $750,000 and can be especially significant in the early years of a loan when payments are mostly interest.
2. State and Local Taxes (SALT)
   State income taxes, property taxes, and sales taxes may be deductible up to a combined limit of $10,000 ($5,000 if married filing separately).
3. Medical and Dental Expenses
   Medical and dental costs—including doctor visits, prescriptions, surgeries, and certain insurance premiums—may be deductible to the extent they exceed 7.5% of your adjusted gross income.
4. Charitable Contributions
   Donations to qualified charitable organizations, including cash, clothing, household goods, and other property, may be deductible if you keep proper documentation.
5. Home Office Deduction
   Individuals who work from home may deduct a portion of home expenses.  This includes items such as rent, utilities, and insurance.  It is based on the percentage of the home used exclusively for business.
6.  Investment Interest
   Interest paid on money borrowed to purchase or maintain taxable investments may be deductible up to the amount of your net investment income.
7. Casualty and Theft Losses
   Losses from federally declared disasters or theft not covered by insurance may be deductible if they exceed 10% of your AGI, with a $100 per-event threshold.
8.  Unreimbursed Employee Expenses
   Certain work-related costs such as tools, uniforms, travel, or job-related education—may be deductible for eligible employees, although many deductions were suspended under recent tax law changes.
9. Tax Preparation Fees
   Fees paid to accountants, tax preparers, or financial professionals for preparing your tax return may qualify as deductible miscellaneous expenses.
10. Student Loan Interest
    Up to $2,500 in interest paid on qualified student loans may be deductible, even if you do not itemize, though the deduction phases out at higher income levels.
11. Educator Expenses
    Eligible educators may deduct up to $300 in unreimbursed classroom expenses—or up to $600 for married couples filing jointly—including supplies, books, and educational software.
12. Reinvested Dividends and Capital Gains Taxes
    Taxes paid on reinvested dividends or capital gains in taxable accounts may increase your cost basis and potentially reduce taxable income when the investment is eventually sold.
13. Child and Dependent Care Expenses
    Expenses for childcare or dependent care that allow you to work or seek employment may qualify for the Child and Dependent Care Tax Credit.
14. Miscellaneous Deductions (Subject to 2% AGI Limit)
    Certain unreimbursed expenses such as union dues, job search costs, or professional expenses may qualify as miscellaneous deductions subject to a 2% AGI threshold.

Final Thoughts

Although itemizing your deductions can be time-consuming, it has the potential to yield significant tax savings. The key to maximizing your return is understanding which expenses you’re eligible to claim. If you’ve had a year with major expenses like purchasing a home, making substantial charitable donations, or incurring high medical bills, itemizing your deductions could substantially reduce your tax bill. 

To make sure you’re capturing every potential deduction, keep good records throughout the year and consult a tax professional. They can help you navigate the complex rules around deductions and ensure you're maximizing your refund or minimizing your tax liability. Itemizing isn’t for everyone, but if your deductions exceed the standard deduction, it could be a smart move for your financial health.   

If you're interested in holistic financial planning that includes tax optimization, contact Altman Advisors. We can guide you through the complexities of your financial situation and help you make the most of your tax savings while planning for a secure future.

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