Tax Write Offs, Credits, and Deductions List

Here is a list of the most common tax write offs you can claim via IRS tax credits and IRS tax deductions.

1. Adoption Tax Credit: This non-refundable tax credit is available to taxpayers who have adopted a child and covers qualified adoption expenses, up to a certain amount.
2. Alimony Deduction (for divorce agreements finalized before 2019): Taxpayers who made alimony payments under a divorce agreement finalized before January 1, 2019, can deduct those payments as an above-the-line deduction, and the recipient must report the alimony as taxable income.
3. American Opportunity Tax Credit (AOTC): This partially refundable credit is available to eligible students in the first four years of higher education, covering up to a certain amount of qualified education expenses.
4. Archer Medical Savings Account (MSA) Deduction: Contributions to an Archer MSA are tax-deductible, and distributions used for qualified medical expenses are tax-free.
5. Bonus Depreciation: Businesses can take an additional first-year depreciation deduction for qualified property, such as machinery, equipment, and certain types of vehicles, allowing them to recover the cost of assets more quickly.
6. Business Expense Deductions: Self-employed individuals and small business owners can deduct ordinary and necessary expenses incurred in running their business, such as office supplies, equipment, and travel expenses.
7. Casualty and Theft Loss Deductions: Taxpayers can deduct the losses from theft or destruction of their property due to natural disasters or other unexpected events, subject to certain limitations.
8. Charitable Contribution Deduction: Taxpayers who itemize deductions can deduct donations made to qualified charitable organizations, subject to certain limits.
9. Child and Dependent Care Credit: This non-refundable tax credit is available to taxpayers who pay for childcare or dependent care services while working or looking for work.
10. Child Tax Credit: A partially refundable tax credit for parents with qualifying children under the age of 17, with the credit amount dependent on income and number of children.
11. Credit for the Elderly or the Disabled: A non-refundable tax credit available to eligible taxpayers who are 65 years or older or retired on permanent and total disability, subject to income limits.
12. Depreciation and Section 179 Expense Deduction: Businesses can deduct the cost of tangible property (like machinery, equipment, or vehicles) over time or choose to expense the entire cost in the year it was placed in service, subject to certain limits.
13. Disaster Loss Deduction: Taxpayers in a federally declared disaster area can deduct personal property losses not covered by insurance or other reimbursements.
14. Disaster Tax Relief: Special tax relief provisions are sometimes enacted by Congress for taxpayers affected by federally declared disasters, providing benefits like extended filing deadlines, casualty loss deductions, and retirement account access.
15. Earned Income Tax Credit (EITC): A refundable tax credit for low- to moderate-income working individuals and families, with the credit amount based on income and number of qualifying children.
16. Educator Expense Deduction: Eligible K-12 teachers, instructors, counselors, and principals can deduct up to a certain amount of out-of-pocket expenses for classroom supplies.
17. Employer-Provided Educational Assistance: Employers can provide tax-free educational assistance to employees for qualified expenses, such as tuition, fees, and books, up to a certain amount per year.
18. Energy Tax Credits: Various tax credits are available for individuals and businesses investing in energy-efficient improvements, such as solar panels, wind turbines, and electric vehicles.
19. Exclusion of Canceled Debt on Principal Residence: Taxpayers who had mortgage debt on their principal residence canceled or forgiven may be able to exclude the canceled amount from their taxable income.
20. Exclusion of Gain on Sale of Small Business Stock: Taxpayers who hold qualified small business stock for more than five years can exclude a portion of the gain from the sale of that stock from their taxable income, subject to certain limits and requirements.
21. FICA Tip Credit: Employers in the food and beverage industry can claim a tax credit for the portion of Social Security and Medicare taxes paid on employees’ reported tip income.
22. Foreign Earned Income Exclusion: U.S. taxpayers living and working abroad can exclude a portion of their foreign earned income from U.S. taxation, subject to certain limits and requirements.
23. Foreign Tax Credit: U.S. taxpayers who pay income taxes to a foreign country can claim a credit to offset those taxes, subject to certain limitations.
24. Health Savings Account (HSA) Deduction: Contributions to a qualifying HSA are tax-deductible, and distributions used for qualified medical expenses are tax-free.
25. Historic Rehabilitation Tax Credit: A tax credit for the rehabilitation of certified historic structures, available to individuals and businesses that own or lease such properties.
26. Home Office Deduction: Self-employed individuals who use a portion of their home exclusively for business purposes can deduct a percentage of their home expenses, such as mortgage interest, property taxes, and utilities.
27. Investment Interest Expense Deduction: Taxpayers can deduct interest paid on loans used to purchase investments, such as stocks and bonds, up to the amount of their net investment income.
28. IRA Deduction: Contributions to a traditional IRA can be tax-deductible, subject to income limits and active participant status in an employer-sponsored retirement plan.
29. Keogh Plan Deduction: Self-employed individuals and unincorporated business owners can establish a Keogh plan, a tax-deferred retirement plan, and deduct their contributions up to certain limits.
30. Lifetime Learning Credit: A non-refundable tax credit available for qualified tuition and related expenses for eligible students, with no limit on the number of years it can be claimed.
31. Low-Income Housing Tax Credit (LIHTC): A tax credit for developers and investors in affordable rental housing for low-income households, with credits allocated by state housing agencies.
32. Medical and Dental Expense Deduction: Taxpayers who itemize deductions can deduct qualifying medical and dental expenses that exceed a certain percentage of their adjusted gross income (AGI).
33. Mortgage Interest Deduction: Homeowners can deduct the interest paid on their mortgage for their primary residence and a second home, subject to certain limitations.
34. Mortgage Points Deduction: Taxpayers can deduct the points paid on a mortgage for the purchase or improvement of their primary residence.
35. Moving Expense Deduction (for military members): Active-duty military members who move due to a permanent change of station can deduct unreimbursed moving expenses.
36. Net Operating Loss (NOL) Deduction: Businesses with a net operating loss in a tax year can carry it back or forward to other tax years to offset taxable income, subject to certain limitations.
37. New Markets Tax Credit: A tax credit for investments in qualified community development entities (CDEs) that provide loans, investments, and financial counseling to businesses in economically distressed communities.
38. Nonbusiness Energy Property Credit: A tax credit for homeowners who make qualified energy-efficient improvements to their primary residence, such as installing energy-efficient windows, doors, or insulation.
39. Opportunity Zone Tax Incentive: Tax benefits for investors who reinvest capital gains into qualified Opportunity Funds, which in turn invest in economically distressed communities designated as Opportunity Zones.
40. Orphan Drug Credit: A tax credit for clinical testing expenses incurred by pharmaceutical companies in the development of drugs for rare diseases or conditions, encouraging the development of treatments for these conditions.
41. Passive Activity Loss Limitations: Taxpayers with passive activity losses (like rental losses) can offset those losses against passive activity income, but any remaining losses may be carried forward to future years.
42. Plug-In Electric Drive Vehicle Credit: A tax credit available to purchasers of qualifying electric vehicles, with the credit amount based on the vehicle’s battery capacity and other factors.
43. Qualified Business Income (QBI) Deduction: A deduction for eligible pass-through business owners, such as sole proprietorships, partnerships, and S corporations, equal to a percentage of their qualified business income, subject to certain limitations.
44. Qualified Tuition and Related Expenses Deduction: An above-the-line tax deduction for qualified tuition and related expenses paid for an eligible student, subject to income limits (note that this deduction expired at the end of 2020, but it may be extended or reinstated by Congress).
45. Real Estate Professional Deduction: Real estate professionals can fully deduct rental real estate losses against other income, avoiding passive activity loss limitations.
46. Research and Development (R&D) Tax Credit: A tax credit for businesses engaged in qualified research activities, aimed at encouraging innovation and technological advancements.
47. Residential Energy Efficient Property Credit: A tax credit for homeowners who install qualifying renewable energy systems, such as solar panels, solar water heaters, and geothermal heat pumps.
48. Residential Renewable Energy Tax Credit: A tax credit for homeowners who install qualifying renewable energy systems, such as solar panels, solar water heaters, and geothermal heat pumps, on their primary or secondary residence.
49. Retirement Savings Contributions Credit (Saver’s Credit): A non-refundable tax credit for eligible taxpayers who make contributions to a qualifying retirement plan, such as an IRA or 401(k), with the credit amount based on income and contribution amount.
50. Section 199A Deduction (see Qualified Business Income Deduction): A deduction for eligible pass-through business owners, such as sole proprietorships, partnerships, and S corporations, equal to a percentage of their qualified business income, subject to certain limitations.
51. Self-Employed Health Insurance Deduction: Self-employed individuals can deduct the cost of health insurance premiums paid for themselves, their spouse, and dependents.
52. Standard Deduction: A fixed dollar amount that reduces taxable income, which taxpayers can claim instead of itemizing deductions, with the amount varying based on filing status.
53. State and Local Tax (SALT) Deduction: Taxpayers who itemize deductions can deduct state and local income, sales, and property taxes, subject to certain limits.
54. Student Loan Interest Deduction: Taxpayers can deduct up to a certain amount of student loan interest paid during the year, subject to income limits.
55. Tax-Exempt Interest: Interest earned on certain state and local government bonds is generally exempt from federal income tax.
56. Unreimbursed Employee Expenses Deduction (suspended for 2018-2025 tax years): Prior to the suspension, taxpayers who itemized deductions could deduct unreimbursed job-related expenses, such as uniforms, tools, and professional dues, that exceeded 2% of their adjusted gross income.
57. Volunteer Mileage Deduction: Taxpayers can deduct the mileage driven for volunteer work at a rate set by the IRS, in addition to other unreimbursed expenses incurred while volunteering for a qualified charitable organization.
58. Work Opportunity Tax Credit (WOTC): A tax credit for employers who hire individuals from certain targeted groups, such as veterans, ex-felons, and recipients of public assistance.