$Missed Deductions

What deductions can I claim with the standard deduction?

Standard vs Itemizedbeginner3 answers · 6 min readUpdated February 28, 2026

Quick Answer

You can claim above-the-line deductions with the standard deduction, including IRA contributions (up to $7,000), student loan interest (up to $2,500), HSA contributions, and educator expenses. These reduce your adjusted gross income before applying the standard deduction.

Best Answer

RK

Robert Kim, CPA

Best for taxpayers taking the standard deduction who want to maximize other available deductions

Top Answer

Above-the-line deductions you can claim with the standard deduction


The standard deduction doesn't prevent you from claiming "above-the-line" deductions, also called adjustments to income. These valuable deductions reduce your adjusted gross income (AGI) before you apply the standard deduction, essentially giving you a double benefit.


These deductions appear on Form 1040 and reduce your AGI dollar-for-dollar, which can also help you qualify for other tax benefits that have AGI limits.


Major above-the-line deductions for 2026


Retirement contributions:

  • Traditional IRA: Up to $7,000 ($8,000 if 50+)
  • SEP-IRA or Solo 401(k): Up to 25% of self-employment income
  • HSA contributions: Up to $4,300 (self-only) or $8,550 (family)

  • Education and professional:

  • Student loan interest: Up to $2,500
  • Educator expenses: Up to $300 for teachers
  • Tuition and fees: Varies by program

  • Business and self-employment:

  • Self-employment tax deduction: 50% of SE tax paid
  • Business expenses: Full amount for Schedule C filers
  • Home office deduction: For self-employed individuals

  • Example: Maximizing deductions with the standard deduction


    Sarah, single filer earning $65,000, takes the standard deduction but also claims:


  • Traditional IRA contribution: $7,000
  • Student loan interest: $1,800
  • HSA contribution: $4,300
  • Total above-the-line deductions: $13,100

  • Her tax calculation:

  • Gross income: $65,000
  • Above-the-line deductions: -$13,100
  • Adjusted gross income: $51,900
  • Standard deduction: -$15,000
  • Taxable income: $36,900

  • Total deductions: $13,100 + $15,000 = $28,100 (43% of her gross income)



    Why above-the-line deductions are valuable


  • Double benefit: Reduces AGI and you still get the standard deduction
  • No AGI limits: Most don't phase out at higher incomes (unlike itemized deductions)
  • Qualify for other benefits: Lower AGI helps you qualify for other credits and deductions
  • Reduce state taxes: Most states follow federal AGI calculations

  • Key above-the-line deductions people miss


  • Educator expenses: Teachers often forget the $300 deduction for classroom supplies
  • HSA contributions: Made outside payroll (direct contributions)
  • IRA contributions: Made up until tax deadline (April 15th for prior year)
  • Self-employment expenses: Home office, business meals, equipment

  • What you should do


    1. Review all above-the-line deductions on Form 1040

    2. Consider maxing out IRA and HSA contributions before the tax deadline

    3. Gather receipts for student loan interest, educator expenses, and business costs

    4. Use our refund estimator to see how these deductions impact your refund


    Remember: You can claim these deductions even if you don't have enough expenses to itemize.


    Key takeaway: Above-the-line deductions like IRA contributions ($7,000 limit) and student loan interest ($2,500 limit) can be claimed with the standard deduction, potentially saving thousands in taxes.

    Key Takeaway: Above-the-line deductions like IRA contributions ($7,000 limit) and student loan interest ($2,500 limit) can be claimed with the standard deduction, potentially saving thousands in taxes.

    Common above-the-line deductions available with the standard deduction

    Deduction TypeMaximum Amount (2026)Who Can ClaimTax Form
    Traditional IRA contribution$7,000 ($8,000 if 50+)Most taxpayers under income limitsForm 1040
    Student loan interest$2,500Borrowers under income limitsForm 1040
    HSA contribution$4,300 self / $8,550 familyHSA account holdersForm 1040
    Educator expenses$300K-12 teachers and staffForm 1040
    Self-employment tax50% of SE tax paidSelf-employed individualsForm 1040

    More Perspectives

    RK

    Robert Kim, CPA

    Best for W-2 employees with basic tax situations who want to ensure they're not missing deductions

    Common above-the-line deductions for W-2 employees


    As a W-2 employee taking the standard deduction, you can still claim several valuable deductions that many people overlook. These don't require itemizing and can significantly reduce your tax bill.


    Most relevant deductions for employees


    IRA contributions: If your employer doesn't offer a 401(k) or you want additional retirement savings, you can contribute up to $7,000 to a traditional IRA and deduct the full amount (income limits apply at higher earnings).


    Student loan interest: If you're paying off student loans, you can deduct up to $2,500 in interest paid, even if your parents claim you as a dependent.


    HSA contributions: If you made HSA contributions outside of payroll deduction, you can deduct them here.


    Example: Recent graduate maximizing deductions


    Alex, 25, earns $45,000 and takes the standard deduction:


  • Student loan interest paid: $1,200
  • IRA contribution: $3,000 (partial contribution)
  • Above-the-line deductions: $4,200
  • Tax savings: $4,200 × 12% = $504

  • This is $504 in tax savings on top of the $15,000 standard deduction benefit.


    What W-2 employees often miss


  • Moving expenses: Generally eliminated except for military
  • Employee business expenses: No longer deductible for W-2 employees
  • Tax preparation fees: Not deductible as of 2018

  • Focus on retirement contributions and student loan interest as your main opportunities for additional deductions.


    Key takeaway: W-2 employees should focus on IRA contributions and student loan interest deductions, which can provide hundreds in additional tax savings beyond the standard deduction.

    Key Takeaway: W-2 employees should focus on IRA contributions and student loan interest deductions, which can provide hundreds in additional tax savings beyond the standard deduction.

    RK

    Robert Kim, CPA

    Best for homeowners who take the standard deduction but want to ensure they're claiming all available deductions

    Above-the-line deductions available to homeowners


    If you're a homeowner taking the standard deduction (because your mortgage interest + property taxes don't exceed the standard deduction threshold), you can still claim valuable above-the-line deductions.


    Key deductions for homeowners


    Home office deduction: If you work from home as a self-employed individual or independent contractor, you can deduct home office expenses above-the-line on Schedule C.


    Mortgage interest on rental property: If you own rental property, mortgage interest is fully deductible as a business expense on Schedule E.


    Energy-efficient home improvements: Some improvements qualify for tax credits (not deductions), which are even better than deductions.


    Example: Homeowner with side business


    Mike owns his home but his itemized deductions only total $12,000, so he takes the $15,000 standard deduction. However, he also:


  • Runs a consulting business from a home office (200 sq ft of 2,000 sq ft home)
  • Home office deduction: 10% × $18,000 annual home expenses = $1,800
  • Business equipment and supplies: $800
  • Total Schedule C deductions: $2,600
  • Tax savings: $2,600 × 22% = $572

  • He gets both the $15,000 standard deduction AND the $2,600 in business deductions.


    What homeowners should know


  • Home office must be exclusive business use: Can't deduct if you also use the space for personal activities
  • Mortgage interest on main home: Only deductible if you itemize, not above-the-line
  • Energy credits: Research available credits for solar, HVAC, and other improvements

  • Even if itemizing doesn't make sense, look for business use of your home that qualifies for above-the-line deductions.


    Key takeaway: Homeowners can claim above-the-line deductions for business use of home, even when taking the standard deduction, potentially adding hundreds in tax savings.

    Key Takeaway: Homeowners can claim above-the-line deductions for business use of home, even when taking the standard deduction, potentially adding hundreds in tax savings.

    Sources

    standard deductionabove the line deductionstax deductionsadjusted gross income

    Reviewed by Robert Kim, CPA on February 28, 2026

    This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.

    What Deductions Can I Claim With Standard Deduction? | MissedDeductions