• Tax deductions are deducted from your taxable income, thereby reducing the amount of tax you have to pay.
  • You can choose a standard deduction or list your deductions on Schedule A of Form 1040 or 1040-SR.
  • The Tax Cuts and Jobs Act (TCJA) nearly doubled the standard deduction and improved several tax deductions.
  • The TCJA has also eliminated or limited many itemized deductions, including the mortgage interest deduction.
  • If you are itemizing your deductions, be sure to keep receipts to prove your expenses.