Standard Deduction and Itemized Deductions Most tax filers take the standard deduction, which was increased by the One Big Beautiful Bill Act and reaches $16,100 for single filers ($32,200 for married joint filers) in 2026. The tax lawmade permanent the repeal of the deduction for personal exemptions, raised the child tax credit (for qualifying children under age 17), and made other significant changes to the tax law. Taxpayers whose deductions exceed the standard deductionmay choose to itemize deductions. However, because of the higher standard deduction, it’s expected that fewer taxpayers will do so. If you do itemize, you may be able to deduct the following types of expenses from your adjusted gross income (within limits). Mortgage interest Property, state, and local taxes Student loan interest Medical expenses Charitable contributions Some taxpayers may be eligible for education tax credits. The American Opportunity Tax Credit offers a maximum annual credit of $2,500 for each of a student’s first five years of post-secondary education. It can be used to pay qualified tuition, fees, and course materials for a student who is enrolled at least half-time. The Lifetime Learning Credit is an annual nonrefundable credit worth up to $2,000 per year, per tax return. The credit is calculated as 20% of the first $10,000 of qualified tuition, fees, and course materials. It applies to college undergraduate, graduate, and vocational education in an eligible educational institution for an unlimited number of years. Income eligibility limits apply to both education credits.
RkJQdWJsaXNoZXIy MTEyOTYzNw==