Top Tax Deductions You Might Be Missing This Year
- sonali negi
- Mar 11
- 4 min read
Tax season is here, and while it may not be the most exciting time of year, it can be one of the most rewarding—if you know where to look for deductions. Many taxpayers leave money on the table simply because they aren't aware of all the deductions they're eligible for.
In this guide, we'll walk you through some of the most overlooked tax deductions, helping you maximize your refund and keep more of your hard-earned cash.
1. Home Office Deduction
With remote work becoming the norm, the home office deduction is more relevant than ever. If you use a portion of your home exclusively for business, you may be eligible to deduct expenses related to that space.
What counts as a deductible home office expense?
Rent or mortgage interest
Utilities (electricity, water, internet)
Homeowners insurance
Repairs and maintenance related to the office space
Pro Tip: Even if you don't have an entire room dedicated to work, you can still claim a portion of these expenses if the space is used exclusively for business.
2. Charitable Contributions
Generosity can pay off come tax season. Most people know they can deduct cash donations, but did you know that donations of goods, mileage driven for charity, and even certain expenses incurred while volunteering can also qualify?
What you might be missing:
The cost of materials you purchased for a charity event
Mileage driven for charitable purposes (currently $0.14 per mile)
Out-of-pocket expenses for volunteer work (like supplies or uniforms)
Just remember to keep all receipts and records to back up your claims.
3. Medical and Dental Expenses
If you've had significant healthcare expenses this year, you might be able to deduct a portion of them. While medical expenses must exceed 7.5% of your adjusted gross income (AGI) to qualify, many people overlook the range of deductible costs.
Commonly missed medical deductions include:
Travel expenses related to medical care
Home modifications for medical reasons (like installing a ramp or handrails)
Prescription medications
Therapy or counseling not covered by insurance
4. Student Loan Interest
If you're paying off student loans, you may be able to deduct up to $2,500 in interest payments—even if you don’t itemize your deductions.
Important tips:
The deduction phases out at higher income levels, so check eligibility.
Even if someone else is paying your loans (like a parent), you're still eligible if you're legally obligated to pay them.
5. State Sales Tax
Did you make any big purchases this year, like a car, boat, or large appliance? You can choose to deduct state income tax or state sales tax on your federal return—whichever is higher.
Why it matters:
For residents in states without income tax, deducting sales tax can be especially beneficial.
Keep receipts for major purchases to maximize this deduction.
6. Educator Expenses
Teachers often dip into their own pockets to buy classroom supplies. If you're an educator, you can deduct up to $300 (or $600 for a married couple filing jointly if both are educators) for unreimbursed expenses.
Eligible expenses include:
Classroom supplies
Books
Technology items (like educational software)
Professional development courses
7. Job Hunting Costs
If you've been looking for a new job in your current field, certain job search expenses might be deductible.
Possible deductions:
Resume writing services
Travel expenses for interviews
Employment agency fees
Note: This deduction is currently suspended for most taxpayers until 2026, but check if your situation qualifies for any exceptions.
8. Dependent Care Credit
If you paid for childcare so you could work, you might be eligible for the Child and Dependent Care Credit. This covers expenses related to care for children under 13, a disabled spouse, or a dependent adult.
Qualifying expenses include:
Daycare fees
Babysitters
Day camps (but not overnight camps)
Transportation provided by the care provider
9. Self-Employment Expenses
If you're self-employed, a freelancer, or run a side gig, there are numerous deductions you might be missing.
Common deductions include:
Business-related travel expenses
Office supplies
Marketing and advertising costs
Self-employment tax (you can deduct half)
Health insurance premiums
Pro Tip: Use apps to track expenses and mileage throughout the year—it can save you a lot of time and maximize your deductions.
10. Energy-Efficient Home Improvements
Did you make any eco-friendly upgrades to your home? You may qualify for tax credits, which are even better than deductions because they directly reduce your tax bill.
Potential credits include:
Installing solar panels or solar water heaters
Upgrading windows, doors, or insulation
Purchasing energy-efficient appliances
Check the IRS guidelines for current qualification criteria and credit amounts.
11. Retirement Contributions
Contributing to a traditional IRA or 401(k) doesn’t just secure your financial future—it can also lower your taxable income today.
Things to remember:
You have until the tax deadline to make contributions for the previous year.
Low-to-moderate-income taxpayers might qualify for the Saver’s Credit.
12. Mortgage Insurance Premiums
If you’re paying private mortgage insurance (PMI) on your home, you may be eligible for a deduction. Although this deduction has been phased in and out over the years, it’s worth checking if it applies to your current filing.
13. State Tax Refunds
If you itemized deductions in the previous year and received a state tax refund, it may be taxable. But in some cases, you can deduct it—so make sure you check the details.
14. Gambling Losses
If you've reported gambling winnings, don't forget you can also deduct gambling losses—up to the amount of your winnings.
Key point: Keep detailed records of wins and losses, including receipts, tickets, and statements.
15. Health Savings Account (HSA) Contributions
Contributions to an HSA are tax-deductible, grow tax-free, and can be used tax-free for qualifying medical expenses. If you have a high-deductible health plan, this is one of the best deductions available.
Final Thoughts
Tax season doesn’t have to be stressful or costly. By knowing which deductions apply to you, you can take control of your finances and potentially secure a larger refund. The key is to stay organized, keep thorough records, and consult with a tax professional if you’re unsure about your eligibility for certain deductions.
Don’t leave money on the table this year. Review these deductions, gather your documentation, and make the most of tax season!
Need professional tax help? Reach out to Contivos Financials to ensure you're maximizing your deductions and keeping more of your hard-earned money.
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