How to Claim Tax Deductions and Save

Income tax deductions offer taxpayers many creative ways to shave dollars off their taxable income totals. However, there are many rules for claiming deductions, which makes it easier to commit mistakes.


This section:

  • Lists all of the commonly claimed tax deductions

  • Describes how each tax deduction works

  • Explains how easy it is to claim deductions when you e-file

So, what can you deduct from your income?

By itemizing your deductions, you may find that you'll save much more money than you would by just taking the standard deduction.

But beware: itemizing deductions can be tricky, and can leave you open to making the sort of mistakes that lead to penalties, or worse, trigger the dreaded audit.

Well, okay, it's not quite that dire. But itemizing does add an extra level of complication to your tax return - so proceed with caution.


Click on the following links for more in-depth information about each of the major topics and to learn how itemize when you e-file:


  • Mortgage interest tax deduction the most commonly claimed deduction. Includes articles on deducting mortgage points and the tax effects of refinancing.

  • Student loan interest deduction allows the deduction of up to $2500 in interest.

  • Medical expenses tax deduction allows the deduction of expenses over 7.5% of A.G.I.

  • Charity & gifts tax deduction allows the deduction of money and goods donated to qualified organizations.

  • Investment interest deduction let's you deduct margin interest

  • Casualty & theft deduction helps defray certain losses

  • Taxes paid deduction allows the deduction of certain local taxes paid the same year

  • Miscellaneous tax deductions deductions that do not fit into any of the above six categories.

Most often when you think of "writing something off" on your taxes, you are in fact thinking of something that would fall into the miscellaneous tax deductions category.

Because it is easy to make a mistake when claiming these, we've included an expanded guide to itemizing tax deductions.

  • Alternative minimum tax. This article explains how this new Irs rule affects those who try to deduct too much.