Your pay structure matters. Start with these three tax-saving opportunities.
For W-2 employees and self-employed professionals. Not every option applies to every taxpayer.
Commission pay does not make you self-employed. Most W-2 bankers and loan officers cannot deduct unreimbursed job costs on their federal return, including mileage, a home office or professional dues. Ask your employer about eligible expense reimbursement instead. IRS employee expense rules ↗
Pre-tax contributions to your workplace 401(k) reduce taxable wages. They are not a second deduction on your return. A traditional IRA contribution may be deductible, depending on income, filing status and whether you or your spouse has a retirement plan at work. Roth contributions are not deductible.
Check your year-to-date contributions and your plan limits before year-end. Confirm IRA eligibility before claiming a deduction.
If you qualify for an HSA, contributions you make outside payroll may be deductible even if you do not itemize. You need HSA-eligible health coverage, no disqualifying coverage, no Medicare enrollment, and you cannot be claimed as someone else's dependent. Employer and pre-tax payroll contributions already receive a tax benefit; do not deduct them again.
Check your coverage and total contributions, including your employer's share. A health plan's high deductible alone does not confirm HSA eligibility.
For tax year 2026, non-itemizers may deduct eligible cash gifts up to $1,000, or $2,000 if married filing jointly. If you itemize, a new floor generally limits the deduction to contributions above 0.5% of adjusted gross income, with other limits also applying. Gifts to individuals are not deductible.
Keep receipts and confirm the charity is eligible. Compare itemizing with the standard deduction before making a tax-driven giving plan.
Self-employed loan originator? Ordinary and necessary business costs may qualify, but separate business use, commuting and reimbursements. Your worker status, not simply receiving commissions or a tax form, drives the treatment.
For employees with higher income, review IRA phaseouts, charitable-giving limits and withholding on bonuses and commissions. For self-employed professionals, review retirement plan choices and estimated taxes.
IRS small business guidance ↗Federal tax education, not individual tax advice. Eligibility, income limits and contribution rules vary. The charitable-giving rules above apply to tax year 2026. Keep records and avoid claiming the same tax benefit twice.
Book a free 15-minute year-end tax check with Louisa, by phone.
Book your free 15-minute tax check →Or call or text 281-656-9666.