When tax season rolls around, many people focus on the obvious deductions like mortgage interest and student loan interest. However, there are plenty of overlooked deductions that could save you hundreds or even thousands of dollars. Here are some of the most commonly missed tax deductions:
State Sales Tax Deduction
If you live in a state with no income tax, you may be able to deduct the state sales tax you paid throughout the year. The IRS provides a standard amount based on income and location, but if you made large purchases (such as a car or home renovation), it could be worth itemizing.
Job Search Expenses
If you were looking for a job in your current field, you may be able to deduct certain job search expenses, including:
- Resume preparation and printing
- Travel expenses for interviews
- Employment agency fees
Medical Expenses
Many taxpayers don’t realize they can deduct medical expenses that exceed 7.5% of their adjusted gross income (AGI). This includes:
- Doctor visits and prescriptions
- Dental and vision care
- Travel expenses for medical treatments
Student Loan Interest (Even If You Didn’t Pay It)
If someone else (such as a parent) pays your student loan interest, the IRS allows you to claim the deduction as if you had made the payment
yourself.
Self-Employed Expenses
Freelancers, independent contractors, and small business owners often miss deductions such as:
- Home office expenses (based on square footage used exclusively for work)
- Internet and phone bills (proportional to business use)
- Business-related meals and travel
Child and Dependent Care Credit
Many parents overlook this tax credit, which can cover daycare, after-school programs, or even a nanny for children under 13 while you work. The
credit can be up to 35% of qualifying expenses.
Energy-Efficient Home Improvements
Did you make energy-efficient upgrades to your home? You may qualify for federal tax credits for:
- Solar panels and energy-efficient appliances
- Insulation, new windows, and doors
- HVAC system upgrades
Charitable Contributions (Beyond Cash Donations)
Many people forget that they can deduct non-cash charitable contributions, such as:
- Donated clothing, furniture, or household items (keep receipts!)
- Miles driven for charity work (currently 14 cents per mile)
- Out-of-pocket expenses for volunteering
State Tax Refund Deduction
If you itemized deductions in a previous year and received a state tax refund, you might be able to deduct it to avoid double taxation.
Educator Expenses
Teachers and eligible educators can deduct up to $300 ($600 for married couples filing jointly if both are educators) for classroom supplies, books,
and technology expenses.
Final Thoughts
Don’t leave money on the table this tax season! Keep detailed records, consult with a tax professional, and review overlooked deductions to
maximize your savings. If you’re unsure about which deductions apply to you, working with a tax advisor can help ensure you’re taking advantage
of all available tax breaks.Need help optimizing your tax return? Contact us today for expert tax guidance!