As the 2025 tax season approaches, understanding personal tax deductions is more crucial than ever, especially if you’re a Virginia resident looking to keep more of your hard-earned money. Whether you’re filing as a single individual, a married couple, or a small business owner, knowing which deductions apply to you can significantly increase your refund or lower your liability.
In this post, we’ll break down the most important personal tax deductions in 2025 and share expert tips on how to take full advantage of them. Plus, we’ll introduce a trusted partner who can help simplify the entire process.
What Are Personal Tax Deductions?
Personal tax deductions are specific expenses the IRS allows you to subtract from your taxable income. These deductions reduce your overall tax burden, which can mean a larger refund or a smaller bill come tax time.
Some deductions are available to all taxpayers, while others depend on your income level, filing status, or life circumstances such as home ownership, education costs, or medical expenses.
Key Personal Tax Deductions for 2025
1. Standard Deduction (2025 Update)
For 2025, the IRS has slightly increased the standard deduction due to inflation adjustments. Here’s what you can expect:
- Single: $14,000 (estimated)
- Married Filing Jointly: $28,000 (estimated)
- Head of Household: $20,800 (estimated)
Most Virginians will take the standard deduction unless their itemized deductions exceed these amounts.
2. Mortgage Interest Deduction
If you own a home in Virginia, you can deduct interest paid on your mortgage, up to a cap of $750,000 in loan principal. This can be a major deduction, especially in high-value real estate markets like Northern Virginia.
3. State and Local Taxes (SALT)
You can deduct up to $10,000 in combined state income and property taxes. This particularly benefits Virginia residents who are paying property and state income taxes.
4. Charitable Contributions
Donations to qualified charities are deductible if you itemize. Keep all receipts and documentation, and remember that even non-cash donations (like clothing or household items) count.
5. Medical Expenses
If your unreimbursed medical expenses exceed 7.5% of your adjusted gross income (AGI), the excess can be deducted. This is often overlooked, but it can be substantial if you’ve had significant medical bills.
6. Student Loan Interest
You can deduct up to $2,500 in student loan interest if your modified AGI is below the IRS threshold. This is an above-the-line deduction, meaning you don’t need to itemize to claim it.
7. Education-Related Credits and Deductions
While not technically “deductions,” credits like the Lifetime Learning Credit or American Opportunity Credit can offset education expenses and reduce your tax liability directly.
How Virginia Residents Can Maximize Their Refund
While many of the above deductions apply at the federal level, Virginia also offers state-specific tax credits and deductions that can benefit taxpayers:
- Virginia College Savings Plan (529) Contributions: Contributions up to $4,000 per account annually are deductible.
- Age Deduction: If you’re 65 or older, you may qualify for a Virginia-specific age deduction based on income levels.
- Long-Term Care Insurance Deduction: Virginia allows a deduction for certain long-term care insurance premiums.
To ensure you’re not missing out on any deductions or credits, working with a knowledgeable tax professional is highly recommended.
Let Accounting Outsourced LLC Handle Your Tax Planning
Maximizing your tax deductions doesn’t need to be complicated. At Accounting Outsourced LLC, we specialize in helping Virginia residents make sense of the tax code and uncover every possible deduction to legally minimize taxes and maximize refunds.
Whether you need help with tax preparation, long-term planning, or year-round financial strategy, our experienced team is here to guide you through every step.
Why Choose Accounting Outsourced LLC?
- Personalized tax strategies tailored to your unique financial situation
- Expertise in Virginia and federal tax law
- Easy, stress-free virtual tax filing options
- Year-round support from real tax professionals
Don’t leave money on the table. Contact us today for a free consultation and find out how much more you could be saving this year. Call (703) 621-1289 to get started.
Final Thoughts
Taking advantage of personal tax deductions in 2025 starts with understanding what you qualify for and planning. Whether you’re filing on your own or working with a professional, every deduction counts. Let Accounting Outsourced LLC help you make this your most rewarding tax season yet
