Tax season can be overwhelming, but understanding the deductions you’re entitled to can save you a significant amount of money. Unfortunately, many taxpayers overlook common deductions, leaving valuable savings on the table. Let’s break down the top tax deductions most people miss, so you can keep more of your hard-earned money.

1. State and Local Taxes (SALT) Deduction

• What it is: You can deduct state and local income, sales, and property taxes up to $10,000 per year.
• Commonly missed: Many taxpayers fail to include sales taxes, especially on major purchases like cars or appliances.

2. Medical Expenses

• What it is: You can deduct unreimbursed medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI).
• Commonly missed: Expenses like transportation to medical appointments, home modifications for medical needs, or prescription eyeglasses often go unclaimed.

3. Student Loan Interest Deduction

• What it is: Borrowers can deduct up to $2,500 in student loan interest paid, even if they don’t itemize deductions.
• Commonly missed: Parents or others paying student loans for someone else may also qualify if they meet income requirements.

4. Educator Expenses

• What it is: Teachers, instructors, and other educators can deduct up to $300 for classroom supplies out-of-pocket.
• Commonly missed: Eligible expenses may include professional development or even items purchased for student use.

5. Home Office Deduction

• What it is: Self-employed individuals or contractors can deduct expenses for a home office used exclusively for business.
• Commonly missed: Many taxpayers overlook costs like home internet, utilities, or depreciation that can be partially allocated to the home office.

6. Retirement Savings Contributions Credit (Saver’s Credit)

• What it is: This credit rewards low-to-moderate income taxpayers for contributing to retirement accounts, like IRAs or 401(k)s.
• Commonly missed: Eligible taxpayers often overlook this credit or fail to claim it on their tax return.

7. Charitable Contributions

• What it is: Deductions for monetary donations, goods, and even mileage driven for charitable purposes.
• Commonly missed: Don’t forget smaller contributions like cash donations at fundraising events or non-monetary donations like clothing.

8. Job Search Expenses

• What it is: Costs related to looking for a new job in your current field, like resume preparation and travel expenses, may be deductible.
• Commonly missed: Only available if you itemize deductions and are not reimbursed for these costs.

9. Energy-Efficient Home Improvements

• What it is: Federal tax credits exist for installing energy-efficient windows, doors, insulation, or solar panels.
• Commonly missed: These credits often go unclaimed because taxpayers are unaware of the eligibility requirements.

10. Lifetime Learning Credit

• What it is: A credit of up to $2,000 for tuition, fees, and course materials for higher education.
• Commonly missed: Available for part-time or career advancement courses—not just full-time students.