- State completed
- Income completed
- Savings and retirement completed
- Deductions
- Credits not completed
Step4 of 5 Deductions
When using Direct File, you can only take the standard deduction.
Direct File supports standard deductions, but not itemized deductions:
About 9 out of 10 people take the standard deduction when filing their federal taxes.
The standard deduction is a set dollar amount that reduces your taxable income. Most people take the standard deduction.
When taking the standard deduction, you can still deduct student loan interest, educator expenses, and Health Savings Account (HSA) contributions.
If you want to take the standard deduction, Direct File may be a good option for you.
Itemized deductions allow you to add up deductible expenses to reduce your taxable income.
You might itemize your deductions if you:
- Spent more than 7.5% of your Adjusted Gross Income (AGI) on medical expenses
- Gave a large amount of money to charity
- Paid a large amount of state income taxes
- Paid a large amount of property taxes or mortgage interest
You can’t itemize deductions with Direct File.
How to choose between the standard deduction and itemized deductions
If you want to itemize deductions, you can’t use Direct File. Find other ways to file your federal taxes.