Maximizing Deductions: What Can You Really Write Off?

For Individual Taxpayers

1. Standard Deduction vs. Itemized Deductions

• The standard deduction for 2025 has increased to:

• $XX,XXX for single filers.

• $XX,XXX for married filing jointly.

• Itemize if your eligible expenses exceed the standard deduction, including:

• Mortgage interest.

• State and local taxes (SALT).

• Charitable contributions.

2. Medical and Dental Expenses

• Deduct unreimbursed medical and dental expenses exceeding 7.5% of your AGI.

• Includes out-of-pocket costs for:

• Doctor visits, surgeries, and prescriptions.

• Long-term care insurance premiums.

• Home modifications for medical reasons.

3. Education-Related Deductions

• Student Loan Interest Deduction: Deduct up to $2,500 in interest paid on student loans.

• Education Credits:

• American Opportunity Credit: Up to $2,500 for eligible undergraduate expenses.

• Lifetime Learning Credit: Up to $2,000 for continuing education or training.

4. Retirement Savings Contributions

• Traditional IRA Contributions: May be deductible depending on income and participation in workplace retirement plans.

• Contributions to Health Savings Accounts (HSA) are also deductible.

5. Work-Related Expenses (If Self-Employed)

• Home office deduction (specific area used exclusively for work).

• Mileage for business-related travel.

• Phone and internet costs directly related to work.

For Small Business Owners

1. Business Expenses

• Office Supplies: Pens, paper, and other essentials.

• Advertising: Costs for promoting your business online or offline.

• Travel: Flights, lodging, and meals for business trips.

2. Depreciation

• Deduct the cost of assets like computers, machinery, and furniture over their useful life.

• Consider Section 179 Deduction to write off the entire cost of qualifying purchases in the same year.

3. Home Office Deduction

• Calculate using one of two methods:

• Simplified Method: $5 per square foot (up to 300 square feet).

• Actual Expense Method: Percentage of home expenses (e.g., utilities, rent) based on office size.

4. Vehicle Expenses

• Deduct business-related mileage or the actual costs of operating your vehicle.

• Maintain a detailed log to substantiate claims.

5. Employee Expenses

• Wages, bonuses, and benefits provided to employees are deductible.

• Contributions to employee retirement plans are also eligible.

What You Can’t Deduct

To stay IRS-compliant, avoid trying to deduct:

• Personal expenses unrelated to your business.

• Political contributions or lobbying expenses.

• Fines or penalties (e.g., parking tickets).

Why Deductions Matter

Maximizing deductions isn’t about gaming the system—it’s about using the tax code to your advantage. At iMinds Financial, we specialize in helping individuals and small business owners identify every eligible deduction while staying within the law.

Need help navigating deductions? Contact iMinds Financial today to ensure you don’t leave money on the table this tax season.