Deductions you can take on top of the standard deduction

By Tom, CPA · Updated October 27, 2026

Part of: Easy Tax Strategies

TL;DR: About nine in ten filers take the standard deduction ($16,100 single, $32,200 joint for 2026), but many breaks still apply on top of it: HSA and deductible IRA contributions, student loan interest, educator expenses, the new 2026 charitable deduction of up to $1,000 ($2,000 joint), the $6,000 senior deduction, and the 2025 law's tips, overtime and car loan interest deductions.

Educational only, not tax, legal, or investment advice. Examples are illustrations, not predictions. Rules and limits change; verify current figures and talk to a qualified professional about your situation.

Taking the standard deduction can feel like giving up. All those receipts, and the IRS just hands you a flat number. But "standard deduction" does not mean "no deductions." A whole set of breaks, called above-the-line adjustments plus a few new ones from the 2025 tax law, apply whether or not you itemize. Many standard-deduction filers miss them because their software interview moves fast and they click "no" on autopilot.

2026 figures from IRS Rev. Proc. 2025-32, Notice 2025-67 and IRS guidance on the One Big Beautiful Bill Act, checked October 27, 2026. Part of easy tax strategies. To decide whether to itemize at all, see itemized vs. standard.

CPA Warning Label: Each of these has its own eligibility rules and income phaseouts; claiming one you do not qualify for, like the senior or overtime deduction, will be adjusted by IRS matching.

2026 standard deduction recap

Every deduction below is taken in addition to these amounts. Early retirees living on low taxable income should also see the standard deduction for early retirees.

HSA

Contributions you make directly to a health savings account (not through payroll) are deductible on Schedule 1, regardless of itemizing. For 2026, the limit is $4,400 for self-only coverage and $8,750 for family coverage, plus $1,000 if 55 or older. You must be covered by an HSA-eligible high-deductible plan, and starting in 2026, bronze and catastrophic marketplace plans count. Payroll contributions are excluded from wages instead, which also saves FICA. You can contribute for 2026 until the April 2027 filing deadline. See the HSA shoebox strategy.

IRA

Traditional IRA contributions are deductible above the line, up to $7,500 for 2026 ($8,600 at 50+), if you have earned income. If you or your spouse are covered by a workplace plan, the deduction phases out: for single covered workers between $81,000 and $91,000 of modified AGI, for married covered workers between $129,000 and $149,000, and for a non-covered spouse whose partner is covered between $242,000 and $252,000. Details in IRA deduction phaseouts.

Student loan interest

Up to $2,500 of interest on qualified student loans is deductible, phasing out for 2026 between $85,000 and $100,000 of modified AGI for single filers and $175,000 and $205,000 for joint filers. Married filing separately cannot claim it. See the student loan interest guide.

Educator expenses

Eligible K-12 educators can deduct up to $350 of unreimbursed classroom expenses for 2026, $700 for two educators filing jointly (with no more than $350 each). Starting in 2026, educators who itemize can also deduct expenses beyond that. See educator expenses.

Non-itemizer charitable

Starting with 2026, non-itemizers can deduct cash gifts to qualifying charities of up to $1,000 single or $2,000 married filing jointly. Gifts to donor-advised funds and private non-operating foundations do not count, and the deduction is for cash only, not property. Get a written acknowledgment for any gift of $250 or more. This is a real change for people who gave modestly and got no deduction for years.

Senior deduction

For 2025 through 2028, people 65 or older can deduct an extra $6,000 each ($12,000 for a couple who both qualify), on top of the regular additional standard deduction for age. It phases out by 6% of modified AGI over $75,000 single or $150,000 joint. You need a valid Social Security number, and married people must file jointly.

Tips, overtime and car loan interest

Also new for 2025 through 2028, and available to non-itemizers:

• Qualified tips: up to $25,000, for occupations that customarily receive tips, phasing out above $150,000 single or $300,000 joint.
• Qualified overtime: the premium portion of overtime required under the Fair Labor Standards Act, up to $12,500 single or $25,000 joint, same phaseout thresholds.
• Car loan interest: up to $10,000 of interest on a loan for a new vehicle with final assembly in the U.S., bought for personal use, phasing out above $100,000 single or $200,000 joint.

Other adjustments people miss

• Half of self-employment tax, self-employed health insurance and SEP or solo 401(k) contributions.
• Early withdrawal penalties on CDs.
• Alimony paid under divorce agreements executed before 2019.
• Moving expenses for active-duty military moving under orders.

Planning checklist

1. Fund your HSA to the limit if eligible, through payroll where possible for the FICA savings.
2. Check whether a traditional IRA contribution is deductible for you this year.
3. Pull Form 1098-E for student loan interest.
4. Teachers: save classroom receipts all year.
5. Track cash charitable gifts and get acknowledgments; skip the donor-advised fund for this one.
6. If 65 or older, confirm the senior deduction is on the return.
7. If you earn tips or overtime, check that your W-2 or employer statement separates the qualifying amounts.
8. If you bought a new U.S.-assembled car with a loan in 2025 or later, get the lender's interest statement and the VIN.

When itemizing beats all this

Most of the deductions above are available either way, so the itemizing decision only compares your itemized total with the standard deduction. If mortgage interest, state and local taxes (capped at $40,400 for 2026 under the 2025 law, with a phasedown for high incomes) and charitable gifts exceed your standard deduction, itemize. If you are near the line, bunching deductions into alternate years can let you itemize one year and take the standard deduction the next. Note that the non-itemizer charitable deduction only applies in standard-deduction years, so bunching and the new deduction can work together.

Common mistakes

• Skipping the HSA question because contributions went through payroll; those are already excluded, but direct contributions need to be entered.
• Giving through a donor-advised fund and expecting the non-itemizer deduction.
• Claiming the senior deduction while filing separately as a married person.
• Deducting all overtime pay rather than just the qualifying premium portion.
• Claiming car loan interest for a used or foreign-assembled car, or a lease.

Lavish Larry managed three of these in one return, which his software flagged with what can only be described as digital disappointment.

Example

Illustration: A married couple, both 67, file jointly for 2026 with $90,000 of AGI before adjustments. They take the standard deduction. One spouse works part-time and contributes $4,000 to a deductible traditional IRA. They give $1,800 in cash to their church.

Without the IRA, senior and charitable deductions, taxable income would be $54,500. The $17,800 difference, mostly in the 12% bracket, saves about $2,136 of federal tax. Social Security taxation and modified AGI definitions can change the details for real retirees.

State returns

States do not all follow these federal rules. Many start from federal AGI, so above-the-line items like the IRA and student loan deductions flow through, but the new federal senior, tips, overtime and car loan deductions are taken after AGI and may not carry over. Check your state's instructions before assuming the same benefit there.

Sources

Amounts come from IRS Rev. Proc. 2025-32 (standard deduction, student loan phaseout, educator expenses), Notice 2025-67 (IRA phaseouts), Rev. Proc. 2025-19 (HSA limits) and IRS guidance on the One Big Beautiful Bill Act provisions for seniors, tips, overtime, car loans and charitable gifts.

Bottom line

Taking the standard deduction is not the end of your tax planning. HSA and IRA contributions, student loan interest, educator expenses, the 2026 charitable deduction and the temporary senior, tips, overtime and car loan deductions all stack on top. Before you file, walk through this list once. A few clicks you would otherwise skip can lower taxable income by thousands, and the software only finds what you tell it.