8 Ways To Find Tax Deductions That Work for You in 2026
Tax season can turn into a race to gather forms and file as quickly as possible. But that can leave valuable deductions behind.
In 2026, several tax breaks are available whether you itemize or not, and others benefit freelancers and small business owners.
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Experts say the key is knowing where to look and keeping the right records throughout the year.
1. Start With Deductions You Can Claim Without Itemizing
Many taxpayers assume deductions only matter if they itemize, but Sebastian Fidilio, certified public accountant (CPA) and owner of accounting firm sebCFO said, "Several deductions now apply to eligible taxpayers whether they itemize or not.”
These include retirement contributions, health savings account (HSA) contributions, student loan interest and educator expenses. While you do need to be aware of the limits on these contributions, they can reduce your taxable income.
2. Revisit Whether the Standard Deduction Still Makes Sense
A major tax law change could make itemizing worthwhile for some households that previously defaulted to the standard deduction. Patrice Berry, an enrolled agent (EA) and owner of Total Tax Experience, LLC, explained that the state and local taxes cap (SALT) increased from $10,000 to $40,000 under the One Big, Beautiful Bill, “which means folks who live in high-tax states or pay a lot in property taxes may now be able to itemize when they couldn't before."
She urged people not to assume the standard deduction is automatically the best move this year.
“Always run it both ways,” she said.
3. Don't Miss New Tax Breaks Created by Recent Law Changes
Some of the newest deductions are also among the least understood.
Berry explained that the new car loan interest deduction, which rolled out in 2025, allows for a deduction of up to $10,000 in interest on a new vehicle, personal use, “as long as final assembly happened in the United States."
"That's an above-the-line deduction, meaning it applies whether you itemize or take the standard deduction,” she said.
Other credits include senior tax credits for qualifying taxpayers and the child tax credit.
4. Freelancers and Gig Workers Should Focus on Business Expenses
Self-employed workers often have the greatest opportunity to uncover deductions, but only if they maintain clear separation between personal and business spending.
Berry pointed to mileage as a big, often overlooked, deduction and encouraged people to “get a mileage app and use it." Beyond that, anything “ordinary and necessary for the business” can be deducted, including portions of rent or mortgage for a home office, a portion of phone and internet and subscriptions tied to the business.
"The key is keeping personal and business separate,” she stressed. “Separate accounts, separate cards, so when it's time to do your Schedule C, you're not guessing."
5. Look Beyond Mortgage Interest for Home-Related Tax Savings
Many homeowners focus solely on mortgage interest, but other housing-related tax benefits may deserve attention in 2026.
"With that SALT cap increase, property taxes are a much bigger deal now for itemizing," Berry said.
She also mentioned a little-known tax rule known as the Augusta Rule. It allows a business owner to rent out their own home for a maximum of 14 days per year without having to claim the income.
6. Track Healthcare, Caregiving and Education Expenses All Year
Many taxpayers miss benefits tied to family and health expenses because they don't realize they qualify or fail to keep documentation.
"Dependent care costs, medical expenses over the threshold, education credits, these get missed because people don't realize they qualify, or they don't keep the documentation to back it up,” Berry said.
For people with significant healthcare expenses, there may also be a deduction for any dollars in excess of 7.5% of their adjusted gross income (AGI). However, you’ll need to keep good receipts to prove you qualify.
7. Let Major Life Changes Trigger a Tax Review
Major milestones also often create new tax opportunities, such as a new baby, marriage or divorce, buying a new vehicle or starting a side business, Berry said. Unfortunately, many taxpayers don't revisit their deductions after significant changes occur.
8. Build Documentation Habits Before Tax Season Arrives
The best deduction is worthless if you can't substantiate it.
"The IRS requires taxpayers to keep receipts and other support to substantiate the positions they take on their tax return," Fidilio said.
As mentioned before, separate accounts, and even a separate and dedicated credit card, can be essential for tracking expenses. For people who don’t like to hold onto paper receipts, Berry recommended, "Take a picture of the receipt and let the paper go.”
She said that electronic copies, snapshots and scans are allowable for the IRS. However, be sure to backup everything if you do throw away the paper copies.
Bottom Line: Know Your Deductions
Don’t hunt for obscure tax loopholes. Learn which tax breaks fit your situation, and keep records throughout the year so you're prepared when tax season arrives.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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