Filing taxes in Texas? Here are five ways to lower your bill in 2026
When tax season rolls around, the main thing most people want to know is simple: How can I make this bill smaller?
The IRS offers deductions and credits that can help, but the rules often change and not everyone knows what still qualifies.
From work costs to medical expenses to education credits, there are real ways to save if you know what to look for.
Here are five options Texans can check before filing returns in 2026.
1. Claim work-related deductions if you’re self-employed
If you work for yourself or run a small business, you can deduct a wide range of ordinary and necessary business expenses.
According to IRS Publication 535, this includes things like your phone bill, home internet, office supplies, work equipment, software subscriptions, advertising costs, and more.
The key is to deduct only the percentage you use for work. For example, if your phone is used 40% for business, you can usually deduct that 40%.
Mileage also counts. IRS Publication 463 explains how to track business miles or calculate actual vehicle expenses.
These deductions don’t apply to most W-2 employees anymore.
Congress suspended unreimbursed employee deductions in 2018, and they were supposed to return in 2026 but the Trump administration’s One Big Beautiful Bill permanently removed them.
The IRS says only a few groups still qualify, including Armed Forces reservists, qualified performing artists, fee-basis government officials, and employees with impairment-related work expenses.
2. Use the home office deduction if you qualify
If you’re self-employed and work from home, you may be able to claim a home office deduction.
According to IRS Publication 587, the space has to be used regularly and exclusively for work. That could be a whole room or just part of one.
The IRS offers two ways to calculate the deduction, including a simplified method based on square footage.
This can help lower your tax bill if a meaningful portion of your home is used for business. Employees who work from home for an employer usually can’t claim this deduction unless they’re reimbursed.
3. Take the educator expense deduction if you’re a teacher
Teachers and certain school staff members can deduct up to $300 of out-of-pocket classroom expenses each year.
According to IRS Publication 529, this includes classroom supplies, books, software, PPE, and professional development courses.
If both spouses are educators and file jointly, the deduction increases to $600 . With how much many Texas teachers spend on their classrooms, this is one benefit that shouldn’t be overlooked.
4. Add up medical expenses, especially after a high-cost year
Medical and dental expenses can be deducted if they pass a certain threshold.
According to IRS Publication 502, you can deduct qualifying medical expenses that go over 7.5% of your adjusted gross income.
This includes doctor visits, dental work, surgeries, prescription medications, medical equipment, and even certain travel costs for medical care.
This deduction often helps people who’ve had a major health year, chronic conditions, or big unexpected medical bills. Caregivers may also qualify in some cases.
5. Check for tax credits that directly reduce your bill
Tax credits lower your bill dollar for dollar, making them one of the most effective ways to save.
Some credits Texans may qualify for include:
- Child Tax Credit : Available to families with qualifying children. The IRS updates the amounts each year.
- Earned Income Tax Credit : A refundable credit for low- and moderate-income workers. The IRS notes it’s one of the most commonly missed credits.
- Education credits : According to IRS Publication 970, the American Opportunity Credit and Lifetime Learning Credit can reduce your tax bill if you or a dependent are paying for college or job training courses.
This story was originally published January 12, 2026 at 12:11 PM.
