Finance Maxxing
Deductions & Credits
Itemized Deductions
Schedule A deductions that replace the standard deduction.
Itemized deductions are reported on Schedule A and replace the standard deduction if they total more.
Common Itemized Deductions
| Deduction | Limit | Notes |
|---|---|---|
| SALT (state + local + property taxes) | $40,000 (2025) | Phase-out above $500K MAGI |
| Mortgage interest | $750K debt limit | Must be for buy/build/improve |
| Charitable contributions | Up to 60% of AGI (cash) | 30% for appreciated property |
| Medical expenses | Exceeding 7.5% of AGI | Unreimbursed only |
| Investment interest | Net investment income | Margin loan interest |
| Casualty losses | Federally declared disasters only | After TCJA |
Strategy: Bunching Deductions
If your itemizable expenses are close to the standard deduction threshold:
- Year 1: Bunch 2 years of charitable donations + prepay property taxes → Itemize
- Year 2: Minimal deductible expenses → Take standard deduction
- Net result: More total deductions over 2 years than taking standard deduction both years
Sources
More in Deductions & Credits
Standard Deduction
Fixed deduction amount based on filing status.
Above-the-Line Deductions
Deductions taken before AGI, regardless of itemizing.
SALT Deduction
State and local tax deduction, capped at $40,000 for 2025.
Mortgage Interest Deduction
Deduction for interest on up to $750K of mortgage debt.
Charitable Contributions
Tax deduction for donations to qualifying organizations.
Student Loan Interest Deduction
Up to $2,500 above-the-line deduction.
Medical Expense Deduction
Deductible medical costs exceeding 7.5% of AGI.