IRS 2025: Complete Guide to Deductions You Can't Miss
📅 February 2026 · Reading time: 7 min
With the deadline to validate invoices on e-Fatura ending on March 2, there are rules and limits every taxpayer should know to ensure they recover the maximum possible on their IRS return. Simply asking for an invoice isn't enough - you need to know what counts, in which category, and up to what amount.
e-Fatura: where it all begins
The e-Fatura portal is the starting point for this entire process. This is where all invoices reported by entities where you made purchases or contracted services throughout 2025 are listed. The process is simple: access "verify invoices", identify those that are "pending", and confirm or correct each one's category. Once done, validated invoices will show the status "registered".
If you don't validate invoices by March 2, there's still a second chance when filing your return, by manually completing Annex H - but the process is considerably more laborious. The exception to this deadline applies to taxpayers residing in municipalities under a state of calamity, who have until April 30.
Deduction categories and what you can recover
Knowing the limits for each category is essential to avoid leaving money on the table.
General family expenses
General family expenses are the broadest category, covering everyday purchases such as food, water, electricity, gas, telecommunications, and clothing. The deduction is 35% of expenses, with a limit of €250 per person - an amount most taxpayers reach easily. For single-parent families, the deduction rises to 45%, with a limit of €335.
Health expenses
Health expenses are deductible at 15%, up to a limit of €1,000 per household. This includes consultations, medication, health insurance, prescription glasses, contact lenses, and hearing aids. Note: expenses with standard VAT, such as some consultations at private clinics, need an associated medical prescription on e-Fatura to qualify in this category.
Education expenses
The deduction is 30%, with a limit of €800 per household - which can reach €1,000 for those attending establishments in the interior or autonomous regions, and €1,100 for displaced students (those studying more than 50 km from the family's permanent residence). Tuition fees, canteen meals, school textbooks, and nurseries are included. However, materials such as notebooks, backpacks, or pencil cases are only considered education expenses if purchased at the school itself.
Housing expenses
Housing expenses are divided between rent and mortgage interest. Rent is deductible at 15%, with limits ranging from €700 to €1,100 depending on taxable income. Mortgage interest on contracts signed before December 31, 2011 has a deduction limit of €296, also variable according to income.
Care home expenses
For those with expenses related to care homes, home support, or elderly care institutions, the deduction is 25%, up to a limit of €403.75. Children who pay for their parents' care home can also benefit from this deduction, provided the family member in care has no income above the minimum wage and the invoice is issued in the name of the person claiming the deduction.
VAT invoice incentive expenses
These expenses allow you to recover part of the VAT paid, up to €250 per household. The percentages vary:
Domestic worker
Those who employed a domestic worker with a contract registered with Social Security can deduct 5% of the remuneration paid, up to a limit of €200.
Watch out for the global deduction limit
Even if you reach the maximum limits in all categories, the total deductible amount may be capped by your annual income:
| Taxable income | Global deduction limit |
|---|---|
| Up to €8,059 | No limit |
| €8,060 to €80,000 | €1,000 to €2,500 |
| Above €80,000 | €1,000 |
Key dates you can't miss
Beyond the invoice validation deadline, there are key dates to keep on your radar:
Don't leave your tax return to chance
IRS may seem complex, but with organisation and the right support, you can ensure that all deductions you're entitled to are effectively considered. The difference between a well-prepared return and a rushed one can mean hundreds of euros.
At Grupo Your, we help individuals and businesses navigate the tax calendar with confidence. If you have questions about your IRS return or the deductions you're entitled to, get in touch.
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