Written by 
Edited by 
Edited by 
Reviewed by 
As the tax season approaches its final stretch, many individuals find themselves scrambling to maximize their savings before the deadline. Understanding the nuances of last-minute tax deductions can be a game-changer for your 2026 tax return. Whether you’re a seasoned filer or a first-time taxpayer, knowing which deductions you can still claim can significantly impact your financial outcome. From charitable contributions to business expenses, there are several opportunities to reduce your taxable income legally and efficiently. If you’re considering itemizing your deductions and are up against the clock to get your taxes filed, here’s some important information about last-minute deductions you might consider.
A financial advisor could help you with tax planning, as well as other financial planning needs. Speak with an advisor today.
What Is a Tax Deduction?
The U.S. has a progressive income tax system. This means that as your income goes up, you are taxed at a higher percentage. You aren’t taxed on your entire income, though, as some money is deductible from your total taxable income. Most people use what is known as the standard deduction, meaning you deduct a dollar figure that is set by the IRS, and increased each year for inflation. The standard deduction amount you’re entitled to take is based on your filing status.
For tax year 2025, the standard deduction is $15,750 for single filers and those married but filing separately. It is $31,500 for joint filers and $23,625 for head of household. For taxpayers age 65 and older, an additional standard deduction may also apply.
Some people, though, choose to itemize their deductions. This takes more time, but if you think you can deduct more than the standard deduction it could save you money. Examples of common itemized deductions include:
- Charitable donations
- Business expenses
- Some medical expenses
- Mortgage interest
- Tax-deferred retirement contributions
Between 2025 and 2028, the government is offering a $6,000 enhanced deduction for seniors (age 65 and older). However, this deduction can be taken whether you itemize or take the standard deduction.
Talk to a tax professional to determine if your unique situation applies to these deductions that might make it advantageous for you to itemize your deductions.
5 Last-Minute Tax Deductions to Consider
If you’re currently preparing your tax returns and still aren’t sure if you should take the standard deduction or go through and itemize, here are some last-minute deductions you may be able to take advantage of that you may not have thought of. Some of these deductions do not require itemizing, while others may affect whether itemizing is worthwhile:
1. Contribute to an IRA or HSA
One effective strategy is to maximize contributions to tax-advantaged accounts. While the deadline for making 2025 employee contributions to a 401(k) generally passed at the end of 2025, eligible taxpayers can generally make 2025 contributions to an IRA or Health Savings Account (HSA) through April 15, 2026.
For 2025, the combined contribution limit for traditional and Roth IRAs is $7,000, or $8,000 for someone age 50 or older. A traditional IRA contribution may be deductible depending on factors including income, filing status and workplace retirement plan coverage. HSA contribution limits for 2025 are $4,300 for self-only coverage and $8,550 for family coverage, with an additional $1,000 available to eligible individuals age 55 and older.
2. Side Hustle Expenses
If you’ve turned a hobby into a legitimate income-producing activity, you may be able to deduct related expenses. The key distinction is whether the activity is considered a business rather than a hobby. For example, if you regularly sell knitted goods online with the intent to make a profit, expenses like knitting needles, patterns and yarn may be deductible.
However, if the activity is classified as a hobby, those expenses generally cannot be written off. The IRS typically looks at factors such as whether you operate in a businesslike manner, depend on the income and show a consistent effort to make a profit when making this determination, and it may presume your activity is a business if it generates a profit in at least three of the last five years.
Use our income tax calculator to explore how deductions and credits impact your final tax liability.
3. Deduct Eligible Self-Employment Expenses
Personal tax preparation fees generally aren’t deductible on a federal individual income tax return. However, self-employed taxpayers may be able to deduct the portion of tax preparation costs attributable to preparing business-related tax forms. Other ordinary and necessary expenses associated with operating a qualifying business may also be deductible.
4. Student Loan Interest
You are probably used to complaining about your student loan debt, but here is a way it can help you. You can deduct up to $2,500 of your student loan interest, subject to income and other eligibility requirements. You do not have to itemize deductions to claim the student loan interest deduction because it is an adjustment to income.
5. Check Charitable Contributions Made in 2026
If you made qualifying charitable contributions by Dec. 31, 2026, make sure you have the records needed to claim an itemized deduction. Donations generally must be completed during 2026 to count on a 2026 return, so making a new charitable gift shortly before the April 2027 filing deadline won’t create a deduction for 2026. You should also confirm that the recipient is an eligible organization and follow IRS substantiation requirements for the type and amount of the contribution.
Bottom Line
Itemizing could lower your tax bill if your eligible expenses add up to more than the standard deduction. Some write-offs are well known, but others are easy to overlook, and missing them could mean paying more than you owe or getting a smaller refund.
“When OBBBA passed in 2025, some of the tax changes led to more people being able to itemize deductions because they were larger than the standard deduction. So, it’s even more important that you check your itemized deductions, especially state and local taxes paid because the $10K cap increased to $40K in 2025,” said Matthew Hofacre, MSPFP, CFP®, EA.
Matthew Hofacre, MSPFP, CFP®, EA provided the quote used in this article. Please note that Matthew is not a participant in SmartAsset AMP, is not an employee of SmartAsset and has been compensated. The opinion voiced in the quote is for general information only and is not intended to provide specific advice or recommendations.
Tax Planning Tips
- A financial advisor can help you get the best deal on your taxes. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Get an estimate of your tax bill using SmartAsset’s income tax calculator. This way you can plan ahead and set a budget based on your estimated payment.
Photo credit: ©iStock.com/Iamstocker, ©iStock.com/Iamstocker, ©iStock.com/dszc