Our tax software supports a variety of deductions and credits that may help reduce your taxable income or lower the amount of tax you owe. Some of these tax benefits are common, while others apply only in specific situations.
Below are several less common deductions and credits you may qualify for.
Casualty and Theft Losses
The Tax Cuts and Jobs Act (TCJA) significantly limited the deduction for personal casualty and theft losses. For tax year 2026, personal casualty losses are generally deductible only if they result from a federally declared disaster.
A casualty loss is damage, destruction, or loss of property caused by a sudden, unexpected, or unusual event, such as:
- Fires
- Hurricanes
- Tornadoes
- Floods
- Earthquakes
- Vandalism
- Theft
In some cases, losses involving vehicles, boats, or other property may qualify if they were caused by a qualifying event and were not the result of intentional misconduct.
To enter a casualty or disaster loss in the program:
- Select Federal > Deductions (Select my forms)
- Select Itemized Deductions
- Select Less Common Deductions
- Select Casualties and Losses
Credit for the Elderly or Disabled
You may qualify for the Credit for the Elderly or Disabled if, at the end of the tax year, you or your spouse:
- Were age 65 or older, or
- Were permanently and totally disabled and received taxable disability income
This credit is generally available only to taxpayers whose income falls below certain IRS limits, so eligibility is relatively limited.
To access this credit in the program:
- Select Deductions (Select my forms)
- Select Credits
- Select Credit for the Elderly or the Disabled
Alimony Paid
For divorce or separation agreements executed after December 31, 2018, alimony payments are generally not deductible by the payer and are not taxable to the recipient.
However, if your divorce or separation agreement was executed on or before December 31, 2018, and has not been modified to adopt the newer rules, you may still be able to deduct qualifying alimony payments.
Important: Child support payments are never deductible.
To enter deductible alimony payments:
- Select Deductions (Select my forms)
- Select Adjustments to Income
- Select Alimony Paid
Other Deductible Expenses
The IRS allows several specialized adjustments to income that may apply in limited situations. These include:
- Jury duty pay that you turned over to your employer
- Reforestation amortization and qualified reforestation expenses
- Repayment of supplemental unemployment benefits under the Trade Act of 1974
- Contributions to certain 501(c)(18) pension plans
- Expenses related to the rental of personal property held for profit
- Contributions by certain chaplains to qualified 403(b) plans
- Attorney fees and court costs related to certain unlawful discrimination claims and other qualifying actions
If one of these situations applies to you, be prepared to keep records supporting the deduction.
Early Withdrawal Penalty
If you withdrew funds early from a certificate of deposit (CD) or other interest-bearing account, your financial institution may have charged an early withdrawal penalty.
The good news is that this penalty is generally deductible as an adjustment to income.
If you received Form 1099-INT, the deductible penalty amount is typically reported in Box 2.
Entering the Form 1099-INT information in the program will usually transfer the deduction automatically.
Other Itemized Deductions
Certain miscellaneous itemized deductions are still available, even though many deductions were suspended under the TCJA.
Examples may include:
- Amortizable bond premiums on taxable bonds
- Federal estate tax attributable to income in respect of a decedent
- Gambling losses, up to the amount of gambling winnings reported on your return
- Impairment-related work expenses for qualified taxpayers
- Repayments under a claim of right (when you repay more than $3,000 that was included in income in a prior year)
- Unrecovered investment in a pension or annuity
Some deductions that were previously available, such as investment management fees and most tax preparation fees, remain suspended for federal tax purposes under current law.
To enter eligible itemized deductions:
- Select Deductions (Select my forms)
- Select Itemized Deductions
- Select Other Itemized Deductions