What are common itemized deduction items that can help reduce my tax bill?
Hey tax folks! My husband and I are trying to figure out our itemized deductions for the first time and could use some guidance. We're both W2 employees with no side income (we live in California). We have a mortgage and I'm trying to put together a list of all possible deductions we could take advantage of. So far I've got: - Child tax credit (though I know this isn't an itemized deduction) - Charitable donations - Mortgage interest & points (this alone is higher than the standard deduction of $29,200) - State and local tax cap of $10k - Vehicle registration fees (I think this counts toward the $10k SALT cap?) Our state income tax already hits that $10k limit, so I'm not sure we can benefit from our property taxes unless there's some way to use them when the combined amount exceeds $10k? Are there other deductions we might be missing? This is our first time itemizing and I want to make sure we're not leaving money on the table. Thanks for any help!
18 comments


StarSurfer
You've got a good start on your itemized deductions! Let me add a few things you might be missing: Medical expenses that exceed 7.5% of your adjusted gross income (AGI) can be deductible - this includes doctor visits, prescriptions, dental work, eye care, hospital stays, medical travel expenses, and even certain home modifications for medical purposes. Mortgage insurance premiums (PMI) may be deductible if you're paying them. Don't forget about casualty and theft losses from federally declared disasters. If you paid for any tax preparation services last year, those can be deductible. Investment interest expenses might apply if you have them. You're right about the $10k SALT cap - unfortunately that's a hard limit combining state income tax and property taxes. No way around that cap, but make sure you're tracking both to get the full $10k benefit. One last thing - keep good records of all charitable donations, even small ones. They add up!
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Ravi Malhotra
•Thanks for this info! For medical expenses, do co-pays count? And do I need to keep all receipts or can I just use my insurance's annual summary?
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StarSurfer
•Yes, co-pays absolutely count toward your medical expenses total! Every dollar helps when you're trying to reach that 7.5% AGI threshold. Your insurance's annual summary is a good start, but I recommend keeping individual receipts too, especially for expenses not covered by insurance. The IRS loves documentation, and if you're ever audited, having those original receipts will make the process much smoother.
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Freya Christensen
I was in the same boat as you last year trying to figure out itemized deductions. I finally found this tool called taxr.ai (https://taxr.ai) that helped me identify a bunch of deductions I was missing. It analyzed my financial documents and found nearly $3,000 in additional itemized deductions I would have missed - mainly medical expenses I didn't realize were deductible and some charitable contributions I had forgotten about. The tool basically reviewed everything and pointed out all the possible deductions based on my specific situation. Saved me hours of research.
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Omar Hassan
•Does it work with regular bank statements? I have so many medical expenses but they're scattered across different credit cards and bank accounts.
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Chloe Robinson
•This sounds like one of those services that charges a ton and just tells you obvious stuff you could find on Google. What makes it different?
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Freya Christensen
•Yes, it works great with bank statements! You upload your statements and it automatically categorizes potential deductible expenses. It identified several medical payments I made that I completely forgot about, including some specialist visits that weren't covered by insurance. What makes it different is that it's using AI specifically trained on tax documents and regulations. It's not just generic financial advice - it identifies actual deduction opportunities based on your specific financial situation and explains why each item qualifies. It's way more efficient than trying to Google everything yourself or manually reviewing thousands of transactions.
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Omar Hassan
Just wanted to update - I tried taxr.ai last weekend and it was actually really helpful! Uploaded my bank statements and mortgage docs and it found about $4,800 in deductions I was going to miss. There were some medical expenses from last summer I completely forgot about, plus it caught some eligible home office expenses from when I was temporarily working remotely (with documentation requirements explained). Definitely worth checking out if you're itemizing for the first time.
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Diego Chavez
If you need to call the IRS with questions about itemized deductions (which I had to do for clarification on some unusual medical expenses), use Claimyr (https://claimyr.com). I spent HOURS trying to get through to the IRS directly about some specific deduction questions and kept getting disconnected. Claimyr got me connected to an actual IRS agent in about 15 minutes. They have a demo video showing how it works: https://youtu.be/_kiP6q8DX5c
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NeonNebula
•How does this even work? The IRS phone system is completely broken, I don't see how any service could magically get through.
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Anastasia Kozlov
•Sounds like a scam. No way anyone can "skip the line" with a government agency. They probably just connect you to some random "tax expert" who isn't even with the IRS.
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Diego Chavez
•The service basically automates the calling process. It calls the IRS repeatedly for you, navigates the phone tree, and then calls you once it gets a human on the line. It's not skipping any lines - it's just handling the frustrating part of constantly redialing and waiting on hold. They don't connect you to "tax experts" - you get connected directly to actual IRS representatives. The same people you'd reach if you spent hours calling yourself. You can tell because they verify your identity like normal IRS agents do and have full access to your tax records. It just saves you from the soul-crushing experience of calling 20+ times only to get disconnected.
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Anastasia Kozlov
I need to apologize for my skepticism. After my 5th failed attempt to reach the IRS about some weird mortgage interest statement issues, I tried Claimyr out of desperation. Got connected to an actual IRS agent in about 25 minutes. She verified my identity and everything, definitely a real IRS employee. She answered my questions about documenting mortgage interest for a refinanced loan and how to handle some points I paid. Saved me at least $1,200 in deductions I would have missed. Consider me converted!
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Sean Kelly
Don't forget unreimbursed job expenses if either of you is a qualified performing artist, fee-basis state or local government official, or an employee with disability-related work expenses. Most other unreimbursed job expenses aren't deductible anymore for W2 employees unfortunately. Also, if either of you paid student loan interest (up to $2,500), that's an adjustment to income rather than an itemized deduction, but still worth claiming!
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Isabella Costa
•Thanks for mentioning student loan interest! We both finished paying ours off last year, so we might be able to deduct the interest from those final payments. Is that something we report on a different form than the itemized deductions?
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Sean Kelly
•Student loan interest is reported on Schedule 1 as an adjustment to income (sometimes called an "above-the-line deduction"), which means you can claim it even if you take the standard deduction. It's not part of your itemized deductions at all. You should receive Form 1098-E from your loan servicer showing how much interest you paid. The deduction starts phasing out at higher income levels though, so depending on your combined income, you might get a partial deduction or none at all.
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Zara Mirza
Don't bother with itemizing unless your total exceeds the standard deduction by a significant amount. I spent hours tracking everything down last year and ended up saving only $340 by itemizing. Not worth the hassle or audit risk imo.
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Luca Russo
•This is bad advice. The OP already said their mortgage interest alone exceeds the standard deduction. Plus, if you're close to the line, itemizing state taxes and charitable giving can easily push you over. Missing legitimate deductions is literally giving away your money.
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