Top 10 Tax Deductions You Might Be Missing

Introduction

Tax deductions can significantly lower your taxable income, potentially saving you hundreds or even thousands of dollars each year. But many taxpayers miss out on deductions simply because they don’t know they qualify for them or how to claim them. In this post, we’ll cover the top 10 tax deductions that you might be missing and how to make sure you claim every deduction you’re entitled to.

1. Home Office Deduction

If you work from home—even part-time—you may qualify for the home office deduction. This isn’t just for freelancers or business owners; employees working remotely during the year might also qualify if your employer doesn’t provide a workspace.

  • Deduct a portion of your rent or mortgage, utilities, and maintenance.

  • The IRS offers a simplified option of $5 per square foot up to 300 square feet.

  • Make sure the space is used exclusively and regularly for work.

2. State and Local Taxes (SALT) Deduction

You can deduct state and local income taxes, property taxes, and sales taxes paid, but the total deduction is capped at $10,000 ($5,000 if married filing separately).

  • Choose between deducting state income tax or sales tax — whichever is higher.

  • Keep records of all property tax payments and estimated state taxes.

3. Student Loan Interest Deduction

If you paid interest on student loans in the tax year, you may be eligible to deduct up to $2,500 of that interest.

  • Applies to loans taken out solely for qualified education expenses.

  • Income limits apply for eligibility.

  • You don’t need to itemize to claim this deduction — it’s an “above-the-line” deduction.

4. Medical and Dental Expenses

Medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI) can be deducted if you itemize.

  • Includes unreimbursed payments for doctors, dentists, prescription medications, medical equipment, and insurance premiums.

  • Keep detailed receipts and records.

5. Charitable Contributions

Donations to qualified charities are deductible if you itemize.

  • Keep receipts or written acknowledgment for donations over $250.

  • Donations can be cash, goods, or even mileage driven for charity work.

  • In some cases, you can deduct out-of-pocket expenses related to volunteering.

6. Educator Expenses

Teachers and educators can deduct up to $300 of unreimbursed expenses for classroom supplies.

  • Includes books, computer equipment, software, and other educational materials.

  • Available even if you don’t itemize deductions.

7. Mortgage Interest Deduction

Interest paid on mortgages for your primary home and sometimes a second home is deductible if you itemize.

  • Applies to mortgages up to $750,000 (for mortgages taken after Dec 15, 2017).

  • Keep Form 1098 from your lender, which reports the interest paid.

8. Job Search Expenses

Although these deductions were limited in recent years, if you’re self-employed or meet specific criteria, some job search expenses might still be deductible.

  • This includes costs for resume preparation, travel related to job search, and career counseling.

  • Check current IRS rules carefully as these deductions are often subject to change.

9. Business Expenses for Self-Employed

If you’re self-employed, there’s a wide range of deductible business expenses you might overlook:

  • Office supplies and equipment

  • Business travel and meals (50% deductible)

  • Professional services (accounting, legal fees)

  • Internet and phone bills (proportional to business use)

10. Energy-Efficient Home Improvements

You may qualify for tax credits (which are even better than deductions) or deductions if you made energy-efficient upgrades to your home.

  • Includes solar panels, energy-efficient windows, and heating systems.

  • Check the current year’s IRS guidelines for available credits.

How to Make Sure You Don’t Miss These Deductions

  • Keep organized records: Save receipts, bank statements, and invoices.

  • Use tax software: Many programs automatically check for deductions.

  • Consult a tax professional: They can spot deductions you might not be aware of.

  • Stay updated: Tax laws change frequently, so stay informed annually.

Conclusion

Missing out on tax deductions means paying more tax than you need to. By knowing which deductions you qualify for and keeping good records, you can lower your taxable income and keep more of your hard-earned money. Take the time to review these common deductions and make sure you’re not leaving money on the table this tax season.