2025 Tax Deductions — Biggest Write-Offs for Individuals
2025 IRS data — updated for current tax year
Above-the-Line Deductions (Anyone Can Claim)
These deductions reduce AGI regardless of whether you itemize or take the standard deduction.
| Deduction | 2025 Limit |
|---|---|
| Traditional IRA contribution | $7,000 ($8,000 if 50+) |
| HSA contribution (individual) | $4,300 |
| HSA contribution (family) | $8,550 |
| Student loan interest | $2,500 (phases out above $85k AGI single) |
| Self-employed health insurance | 100% of premiums |
| Self-employment tax deduction | 50% of SE tax paid |
| SEP-IRA contribution | Up to $69,000 (25% of net earnings) |
Common Itemized Deductions
Itemizing makes sense only if total deductions exceed your standard deduction. The SALT deduction (state and local taxes) is capped at $10,000 — a major limitation for high-tax state residents.
Frequently Asked Questions
Can I deduct my home office?
Self-employed workers using a dedicated space regularly and exclusively for business can deduct home office expenses — either actual costs or $5 per square foot (up to 300 sq ft) using the simplified method.
Are 401(k) contributions tax deductible?
Traditional 401(k) contributions reduce your taxable income dollar-for-dollar. The 2025 employee contribution limit is $23,500 ($31,000 if 50+). Roth 401(k) contributions use after-tax dollars and are not deductible.