5 Completely Legal Ways To Reduce Taxes That Don’t Require Itemizing
Written by
Travis Woods
Edited by
Zuri Anderson
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Tax season is here again, along with all the stress that comes with it.
To expedite the tax process, most Americans take the standard deduction; however, there are a number of above-the-line breaks and creates that can cut down on your taxes without ever requiring you to utilize Schedule A itemizing.
Here are five such completely legal ways to reduce your taxes in 2026.
Contribute to a Traditional 401(k) or IRA
Per U.S. News & World Report, pre-tax contributions to a 401(k) account can reduce your taxable wages. Elsewhere, deductible IRA contributions can lower your adjusted gross income (AGI) if you qualify (based on income and coverage). Further, both methods compound savings because investment growth is tax-deferred until withdrawal.
Utilize a Health Savings Account (HSA)
As long as you’ve enrolled in a high-deductible health plan, HSA contributions are deductible — even when you take the standard IRS deduction, according to NOLO. If the contributions go through payroll, they are pre-tax and thus never show up as income.
Deduct Student Loan Interest
This is, like HSA deductions, another above-the-line deduction on Schedule 1 — meaning it’s an adjustment to income, not an itemized deduction. Student loan interest can be deducted and can lower AGI for many borrowers, per SmartAsset.
Claim the Saver’s Credit
Qualifying low-income taxpayers who also contribute to retirement accounts can qualify for a nonrefundable tax credit in addition to their regular deduction, according to U.S. News & World Report. This credit is often more powerful than a deduction of the same size, because it cuts tax liability dollar for dollar.
Utilize Eligible Educator Expenses
Grade-school educators and staff are allowed to deduct out-of-pocket classroom costs above-the-line, according to SmartAsset. While this is only a small break, it’s a beneficial way for educators who buy their own supplies to cut down on tax fees without itemizing.
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