The 2026 Deductions Playbook — Standard vs Itemized, SALT $40,000, Medical, Charity & Education Explained
Deductions can change your entire tax bill — but most Americans don’t know which ones actually apply to them.
The 2026 tax year brings larger standard deductions, a drastically expanded SALT limit, medical deduction rules, charitable contribution opportunities, student expense benefits, and new OBBBA deductions.
This guide breaks everything down in a simple, practical way so you can choose the best strategy and avoid leaving thousands of dollars on the table.
1) Standard Deduction (2026)
Standard deductions increase again for 2026 due to inflation adjustments:
- Single: $15,750
- Married Filing Jointly: $31,500
- Head of Household: higher than single due to additional adjustment
Around 85–90% of Americans use the standard deduction because it is larger than their itemized amount.
A single taxpayer with $3,500 medical expenses and $6,000 SALT still falls below $15,750.
Standard deduction is the clear winner.
2) Itemized Deductions — When They Are Worth It
Itemizing only makes sense when your eligible deductions exceed the standard deduction.
You can itemize:
- SALT (State & Local Taxes)
- Mortgage interest
- Medical expenses above 7.5% AGI
- Charitable contributions
- Casualty/theft losses (federally declared disasters)
Homeowners and high-income earners often benefit the most from itemizing.
3) SALT Deduction — Expanded to $40,000
One of the biggest 2026 changes is the expansion of SALT to up to $40,000.
SALT includes:
- State income tax
- Property taxes
- Local taxes
- Real estate taxes
Previously capped at $10,000, this expansion dramatically affects homeowners in states like CA, NY, NJ, CT, MA, WA, and MD.
Property tax: $18,000
State income tax: $9,000
City tax: $3,000
Total = $30,000 SALT deduction (was limited to $10,000 before).
4) Medical Expense Rules
Medical expenses are deductible only if they exceed 7.5% of AGI.
Eligible expenses include:
- Out-of-pocket medical and dental
- Prescription drugs
- Long-term care premiums (age-based limits apply)
- Medical travel mileage
- Certain home medical equipment
Medical deductions benefit taxpayers with high medical bills, especially retirees.
5) Charitable Deductions (2026 Rules)
Charitable gifts are fully deductible if you itemize.
- Cash donations
- Non-cash donations (Goodwill, Salvation Army)
- Qualified charitable distributions (QCDs) for age 70½+
A 72-year-old making a $5,000 QCD reduces their RMD income — lowering taxable income and potentially avoiding IRMAA.
6) Education-Related Deductions
Education costs can qualify you for deductions or credits:
- Student loan interest ($2,500 deduction)
- American Opportunity Tax Credit
- Lifetime Learning Credit
- 529 plan withdrawals (qualified expenses)
Even part-time students may qualify for valuable credits.
7) Deduction Strategy That Saves the Most
✔ 1) Compare itemized vs standard every year
Your situation can change — especially mortgage interest, medical bills, and SALT.
✔ 2) Bunching Strategy
Combine charitable donations into one year to exceed the standard deduction threshold.
✔ 3) Track medical expenses carefully
Medical deductions are more powerful for taxpayers with variable AGI or high-cost years.
✔ 4) Use QCDs if age 70½+
It reduces taxable income AND your RMD.
✔ 5) Don’t ignore education credits
They reduce tax liability dollar for dollar — much stronger than deductions.
8) Top 3 Google FAQs (2026)
Yes — charitable deductions only apply if you itemize.
Yes. The OBBBA legislation expanded the SALT limit significantly for 2025–2026 returns.
Yes — health insurance premiums count as medical expenses and can be deducted if total medical costs exceed 7.5% of AGI.
핑백: How to File Your 2026 Tax Return