The IRS isn’t just about paperwork headaches. There are ways to reduce taxes without itemizing. Certain deductions quietly lower taxable income while keeping filing simple and stress-free. And if holding onto more of your hard-earned money this year sounds good, it’s time to check out what’s available. Here are 13 deductions in 2025 that can make a noticeable difference for taxpayers claiming the standard deduction.
Student Loan Interest Deduction
Student loan borrowers can lower their tax burden by up to $2,500 through interest deductions on qualifying education loans. This tax break applies whether the loans are for your own education or a dependent’s. Plus, in many states, you might be able to save even more.
Educator Expense Deduction
Spending your own money on classroom supplies? Well, the IRS recognizes your dedication. K-12 educators working at least 900 hours can deduct these out-of-pocket expenses, as well as professional development costs. Whether you’re a teacher, counselor, principal, or aide, this deduction is yours without the hassle of itemizing.
Health Savings Account (HSA) Contributions
HSA contributions provide a powerful tax advantage for anyone with a qualifying high-deductible health plan. The funds may be used tax-free for medical expenses and rolled over indefinitely. Smart savers are even able to invest their HSA money in stocks and mutual funds, creating a dedicated healthcare nest egg that grows over time.
Self-Employed Retirement Plan Contributions
If you’re self-employed, saving toward retirement can also reduce your taxes. Retirement plans like SEP IRAs let you make tax-deductible contributions, even without employees. The best part? You have the flexibility to make contributions anytime up until your tax filing deadline, which helps you save efficiently.
Self-Employed Health Insurance Premiums
Self-employed individuals enjoy unique tax advantages for health expenses. They can deduct family health insurance premiums directly, without itemizing deductions. And this benefit isn’t limited to medical coverage—it also includes dental and long-term care plans. These deductions help reduce taxable income while making healthcare more affordable for business owners.
Cutting Down On Penalty
Sometimes, you need cash quickly, and withdrawing from a savings account early can come with a bank penalty. The good news? You can deduct that penalty on your taxes. It reduces your taxable income, even if you put the withdrawn money into another account or investment.
Military Moving Expenses
Military service members can benefit from valuable tax savings when moving for a permanent change of station. And this deduction covers unreimbursed expenses such as transportation, storage, and travel costs. By claiming these moving-related expenses, service members can reduce their taxable income and ease the financial burden of relocation.
Reducing Alimony (Pre-2019 Agreements)
Divorces finalized before 2019 allow you to deduct alimony payments on your taxes, even with the standard deduction. Property settlements and child support don’t qualify. Anyone receiving alimony must report it as taxable income, the money the IRS counts when calculating taxes owed. This makes sure both payers and recipients follow IRS rules correctly.
Deductions For Self-Employed Artists
Performing artists are able to claim special tax deductions for work-related expenses that aren’t reimbursed. This includes essential costs like travel, costumes, and supplies. To qualify, artists must earn income from multiple employers and stay within certain income limits, making these deductions a valuable way to reduce taxable income.
Savings Through ABLE Accounts
Tax-savvy families can benefit from ABLE accounts, which provide tax-free growth potential for individuals with disabilities. These accounts maintain federal benefits eligibility while accepting contributions from any willing donor. The tax deduction remains available even for those taking the standard deduction on their returns.
