Best Tax Deductions and Credits 2026

Common Tax Deductions

Standard Deduction

For 2026, the standard deduction is $16,100 (single), $32,200 (married filing jointly), and $24,150 (head of household). Most taxpayers take the standard deduction because it's simpler and often more valuable.

Mortgage Interest

If you itemize, you can deduct mortgage interest on loans up to $750,000 ($375,000 if married filing separately). This is only worthwhile if your total itemized deductions exceed the standard deduction.

Charitable Donations

Donations to qualified 501(c)(3) organizations are deductible if you itemize. Cash donations are limited to 60% of your adjusted gross income. Keep receipts for all donations over $250.

Medical Expenses

You can deduct unreimbursed medical expenses that exceed 7.5% of your adjusted gross income. This includes insurance premiums, prescription medications, dental and vision treatments.

Valuable Tax Credits

Child Tax Credit

Up to $2,200 per child under 17 (OBBBA permanently raised the base from $2,000 effective tax year 2025). Up to $1,700 is refundable (Additional Child Tax Credit) for 2026. Phases out for incomes above $200,000 (single) or $400,000 (married) — those thresholds are not inflation-indexed.

Earned Income Tax Credit (EITC)

A refundable credit for low-to-moderate income workers. The 2026 maximum credit is $7,830 (3+ children), $6,960 (2 children), $4,213 (1 child), or $632 (no children).

Lifetime Learning Credit

Up to $2,000 per tax return for qualified education expenses. Available for undergraduate, graduate, or professional development courses. Phases out for incomes above $80,000 (single) or $160,000 (married).