Let’s be real—taxes aren’t exactly fun. But what’s worse? Paying more than you actually owe. Every year, millions of people miss out on deductions that could put serious cash back in their pockets.
If you’re tired of handing over extra money to the IRS, it’s time to take a closer look at your tax return. Here are 10 overlooked tax deductions that could mean major savings for you.
1. Student Loan Interest (Even If You Didn’t Pay It)
Think you can only deduct student loan interest if you’re the one making payments? Not exactly. If your parents or someone else paid your loans, the IRS still considers it as if you made the payment. That means you get the deduction—up to $2,500!
2. Job Hunting Expenses
Searching for a new gig? Those resume printing costs, career coaching fees, and even travel expenses for interviews might be deductible—if they’re related to your current career field. Keep those receipts!
3. State Sales Tax
Most people take the standard deduction for state income tax, but if you live in a state with no income tax (like Texas or Florida), you can deduct state sales tax instead. If you made any big purchases last year (car, boat, home improvements), this deduction could be huge.
4. Medical and Dental Expenses
If your medical bills added up to more than 7.5% of your income, you might qualify for a deduction. This includes doctor visits, prescriptions, therapy, and even mileage for medical trips.
5. Home Office Deduction
Work from home? Even if you’re not self-employed, you could qualify for a home office deduction. If your workspace is exclusively used for work, you can deduct a portion of your rent, utilities, and internet.
6. Charitable Contributions (Beyond Cash Donations)
Donated clothing, furniture, or even mileage driven for charity work? You can write that off. Just make sure to keep records—photos and receipts help in case of an audit.
7. Mortgage Points Deduction
If you bought a home and paid points to lower your mortgage rate, you might be able to deduct those points on your taxes. Even if the seller covered them for you, you could still qualify!
8. Educator Expenses
Teachers, don’t forget: You can deduct up to $300 in classroom expenses—even if you take the standard deduction. That means books, supplies, and even some technology costs might be covered.
9. Energy-Efficient Home Improvements
Made eco-friendly upgrades to your home? Certain improvements like solar panels, energy-efficient windows, and new insulation can qualify for tax credits that directly reduce your tax bill.
10. Childcare Expenses
If you paid for daycare, after-school programs, or even summer camp for your kids, you might qualify for the Child and Dependent Care Credit—which can be worth up to $8,000 per child!
Final Thoughts: Don’t Leave Money on the Table
Taxes are complicated, but missing out on deductions? That’s just throwing money away. Take some time to review your tax return (or talk to a tax pro) to see if you qualify for these overlooked tax breaks.
