What Deductions Can You Claim on Your Taxes? A Guide for Individuals and Businesses

Understanding tax deductions is key to lowering your tax liability and keeping more of your hard-earned money. Whether you’re filing as an individual or a business owner, knowing which deductions you can claim can make a significant difference in your tax return. At JW Professional Services, we’re here to help you maximize your deductions and ensure that you’re not leaving money on the table.

Here’s a breakdown of the most common deductions for individuals and businesses, along with how they can benefit you.

Tax Deductions for Individuals

1. Standard Deduction For most individuals, the standard deduction is the simplest way to reduce taxable income. For 2025, the standard deduction for single filers is $13,850, and for married couples filing jointly, it’s $27,700. This deduction automatically applies unless you choose to itemize your deductions.

2. Itemized Deductions If you have significant expenses, you may choose to itemize deductions instead of taking the standard deduction. Some common itemized deductions include:

• Mortgage Interest: Homeowners can deduct interest paid on a mortgage for their primary or secondary residence.
• Medical Expenses: If your medical expenses exceed 7.5% of your adjusted gross income (AGI), you can deduct them.
• State and Local Taxes (SALT): You can deduct up to $10,000 of state and local income, sales, and property taxes combined.
• Charitable Contributions: Donations to qualified charitable organizations are deductible. Make sure to keep records of donations.

3. Retirement Contributions Contributions to retirement accounts, such as an IRA or 401(k), are tax-deductible. This reduces your taxable income while helping you save for the future.

4. Student Loan Interest You can deduct up to $2,500 in interest paid on student loans. This deduction is available even if you don’t itemize deductions.

5. Child and Dependent Care Credit If you paid for childcare while working, you might be eligible for a child and dependent care credit. The credit amount is based on your income and the number of children or dependents you’re claiming.

Tax Deductions for Businesses

1. Business Expenses As a business owner, you can deduct a wide range of ordinary and necessary business expenses, which include:

• Office Supplies and Equipment: The cost of office supplies, computers, software, and other equipment used for business purposes can be deducted.
• Rent and Utilities: If you rent office space, you can deduct the rent as well as the cost of utilities.
• Employee Wages: Salaries and wages paid to employees are deductible, along with any benefits offered (health insurance, retirement plans, etc.).

2. Depreciation For businesses that own significant assets (like buildings, machinery, or vehicles), you can depreciate these assets over time. Depreciation allows you to deduct the cost of the asset over several years, reducing your taxable income.

3. Home Office Deduction If you run your business from home, you may qualify for a home office deduction. This deduction is based on the percentage of your home used exclusively for business purposes, and it can include a portion of your rent, mortgage, utilities, and insurance.

4. Business Travel and Meals Travel expenses related to business, such as airfare, lodging, and meals, are deductible. However, keep in mind that only 50% of business meal expenses are deductible.

5. Self-Employment Tax Deduction If you're self-employed, you can deduct half of your self-employment tax. This helps to offset the tax burden of paying both the employer and employee portion of Social Security and Medicare taxes.

6. Retirement Plan Contributions Similar to individuals, business owners can deduct contributions to retirement plans like a SEP IRA, Solo 401(k), or Simple IRA, helping reduce taxable income while saving for retirement.

7. Health Insurance Premiums If you are self-employed, you can deduct the premiums you pay for your health insurance coverage, as long as you're not eligible for another plan (such as through a spouse’s employer).

Conclusion: Maximize Your Deductions with JW Professional Services

Whether you’re an individual or a business owner, tax deductions are one of the most effective ways to lower your tax bill. The key is understanding which deductions you qualify for and keeping detailed records to support your claims.

At JW Professional Services, we specialize in helping individuals and businesses navigate the complexities of tax deductions. Our team is here to ensure that you’re taking full advantage of every available deduction, ultimately helping you save more money and stay compliant with the IRS.

If you’re unsure about which deductions apply to you or need assistance with tax planning, don’t hesitate to reach out. Contact us today to schedule your consultation and let us help you optimize your tax strategy!