President Donald Trump’s One Big Beautiful Bill Act (OBBBA) increased the state and local tax (SALT) cap deduction to $40,000, benefiting homeowners in high-property tax states. This could push deductions past the standard deduction of $15,750 for individuals and $31,500 for married couples filing jointly.

The Tax Cuts and Jobs Act (TCJA) of 2017 eliminated many itemized deductions, but the OBBBA made these changes permanent, offering ways for middle-class Americans to reduce their tax bills starting in 2025. Deductions for mortgage interest paid in 2025 and beyond are capped at $750,000 of mortgage debt.

Medical expenses can be deducted if they exceed 7.5% of adjusted gross income (AGI). This includes co-pays, bills, insurance premiums, equipment, drugs, and more. You can also deduct miles driven to medical appointments and expenses related to service animals like dogs used for medical needs.

Charitable contributions are deductible, but with changes under the OBBBA for 2026. There is a 0.5% floor on charitable deductions before a 60% deduction limit applies. For AGI of $100,000, up to $500 in donations may not count toward the 60% limit. Stocks and other assets have a 30% limit with a 0.5% floor.

Donations must be made to a qualified charity with a receipt received for the donation. If donating non-cash goods or services, IRS Form 8283 must be filled out and signed by a knowledgeable third party at the time of donation. Keep all receipts for deductions.

Read more at Yahoo Finance: 3 Ways To Maximize Your Tax Deduction If You’re Itemizing for 2025