3 Ways To Maximize Your Tax Deduction If You’re Itemizing for 2025

Core Points - The One Big Beautiful Bill Act (OBBBA) increased the state and local tax (SALT) cap deduction to $40,000 from $10,000, benefiting homeowners in high property tax states [1] - The Tax Cuts and Jobs Act (TCJA) of 2017 made many itemized deductions permanent, but there are still opportunities for middle-class Americans to reduce tax bills starting with their 2025 returns [3] Mortgage Interest - Homeowners can deduct mortgage interest paid on up to $750,000 of mortgage debt starting in 2025, as per IRS guidelines [4] - Taxpayers should obtain their 1098 form from lending institutions to report mortgage interest [4][5] Medical Expenses - Medical expenses can be deducted if combined with SALT payments exceed the standard deduction, but only expenses exceeding 7.5% of adjusted gross income (AGI) are eligible [6] - Qualified medical expenses include co-pays, medical bills, insurance premiums, and transportation costs to medical appointments [7]