O Employee contributions to flexible spending accounts O Inherited money or property O Withdrawals from state-sponsored Section 529 plans used for education Home ownership can provide significant income tax savings compared to renting a comparable home. This is because a taxpayer's w, tax deductible. The contributions or expenses associated with cannot be paid with pre-tax dollars, and therefore cannot reduce your taxable income Out-of-pocket medical and dental expenses are tax deductible if in excess of 20% of adjusted gross income