Common Tax Deductions TurboTax Helps You Find

A quick distinction makes everything else click. A deduction lowers the income that gets taxed, while a credit lowers your tax directly. Both can reduce what you owe, but they work in different ways. TurboTax asks about each as you go.

This is an independent guide for general education and not personalized tax advice. We're not affiliated with Intuit.

Every filer can take the standard deduction, a flat amount based on your filing status. Or you can itemize by adding up specific deductible expenses. You take whichever one is larger. TurboTax runs both paths and points you to the one that lowers your tax more, so you don't have to guess.

If you itemize, the usual categories include:

• Mortgage interest on a qualifying home loan.
• State and local taxes, within limits.
• Charitable contributions to qualified organizations.
• Certain medical expenses above a threshold.

Keep records and receipts for anything you claim.

Some deductions are available even if you take the standard deduction. Depending on the year and your situation, these can include things like student loan interest and certain contributions to retirement or health savings accounts. TurboTax asks about these separately, so answer those questions even if you're not itemizing.

If you run a business or freelance, there's a wider set of deductions for ordinary and necessary business expenses, like supplies, a qualifying home office, and a portion of self-employment tax. These can meaningfully lower your taxable income, so track your business expenses throughout the year, not just at tax time.

The best way to capture your deductions is to answer every TurboTax question fully rather than rushing past sections that seem like they don't apply. Gather your receipts and statements before you start, and let the program's prompts jog your memory. A deduction you forget is money left on the table.