Tax Deduction Calculator
Calculate your tax deductions and see how much you can save
Calculate Tax Deductions
Your total income before any deductions
Your tax filing status
65+ qualifies for additional deduction
Qualifies for additional standard deduction
Deduction Type
Standard Deduction Details
Tax Calculation Results
Income Breakdown
Tax Comparison
💡 Recommendation
Take the standard deduction. Your standard deduction of $13,850 is higher than your itemized deductions of $0. You'll save more with the standard deduction.
Deduction Insights
Example Calculation
Single Filer Example
Gross Income: $75,000
Standard Deduction: $13,850
Itemized Option:
- • Mortgage Interest: $10,000
- • Property Taxes: $5,000
- • State Taxes: $3,500
- • Charitable Gifts: $2,000
- • Total Itemized: $20,500
Result
Recommended: Itemize ($20,500 > $13,850)
Taxable Income: $54,500 ($75,000 - $20,500)
Tax Savings: ~$1,463 vs. standard deduction
Note: SALT deduction capped at $10,000 (property + state taxes)
2023 Standard Deductions
Common Deductions
Deduction Tips
Keep detailed records of all deductible expenses
Most taxpayers benefit from the standard deduction
Itemize only if total exceeds standard deduction
SALT deduction capped at $10,000
Consider "bunching" deductions in alternate years
Understanding Tax Deductions
What are Tax Deductions?
Tax deductions reduce your taxable income, which in turn lowers your tax liability. The IRS allows you to choose between the standard deduction (a fixed amount based on filing status) or itemized deductions (summing up specific qualified expenses).
Standard vs. Itemized
- •Standard Deduction: A fixed amount everyone can claim. Simple and requires no documentation.
- •Itemized Deductions: Sum of specific expenses like mortgage interest, charitable donations, etc. Requires documentation.
- •You choose whichever method gives you a larger deduction.
Common Itemized Deductions
Mortgage Interest
Interest paid on home loans up to $750,000
SALT (State and Local Taxes)
Property taxes + state/local income taxes (capped at $10,000)
Charitable Contributions
Donations to qualified 501(c)(3) organizations
Medical Expenses
Only amounts exceeding 7.5% of your AGI
Important Deduction Limits
SALT Cap
The total of state and local taxes (including property taxes) is limited to $10,000 per household.
Medical Threshold
Only medical expenses that exceed 7.5% of your adjusted gross income are deductible.
Mortgage Interest
Deductible on mortgages up to $750,000 ($1M for loans before Dec 2017).
Tax Deduction Strategies
- • Bunching: Group deductible expenses into one year to exceed the standard deduction threshold
- • Timing: Control when you pay deductible expenses (prepay January property taxes in December)
- • Donations: Donate appreciated securities directly to charities to avoid capital gains tax
- • Documentation: Keep detailed records, receipts, and acknowledgment letters for all deductions
- • Professional Help: Consider consulting a tax professional for complex situations