Top 10 Deductions You Might Be Missing

Tax season can be a stressful time, but it doesn’t have to be! Many taxpayers overlook key deductions that can significantly boost their refunds. Here are the top 10 deductions you might be missing:

1. Home Office Deduction

Do you use part of your home exclusively for business? You could be eligible for a home office deduction. Calculate your deduction based on the percentage of your home used for business, and remember to keep detailed records of expenses.

2. Student Loan Interest

If you’re paying off student loans, you can deduct up to $2,500 in interest each year. This deduction is especially valuable for recent graduates. Ensure you have your Form 1098-E from your loan servicer.

3. Medical Expenses

Medical expenses that exceed 7.5% of your adjusted gross income (AGI) can be deducted. This includes prescriptions, doctor visits, and medical equipment. Group your expenses to surpass the threshold and maximize your deduction.

4. Charitable Contributions

Donations to qualified charities can be deducted, whether they are in cash or non-cash items. Make sure to get receipts and track your contributions.

5. Retirement Contributions

Contributing to an IRA or 401(k) not only secures your future but also offers tax benefits. Depending on your income, you might qualify for a tax credit as well.

6. Education Expenses

Education credits like the American Opportunity Credit and the Lifetime Learning Credit can reduce your tax liability. Qualifying expenses include tuition, fees, and course materials.

7. State Sales Taxes

If your state doesn’t have an income tax, you can deduct state and local sales taxes instead. Use the IRS sales tax calculator to estimate your deduction.

8. Job Hunting Costs

Job search expenses, including travel, resume preparation, and placement fees, can be deductible if you’re looking for a job in the same field. Keep detailed records to claim these costs.

9. Self-Employment Expenses

Freelancers can deduct a variety of expenses like office supplies, internet, and travel. Accurate record-keeping is crucial for these deductions.

10. Investment Losses

If you’ve had a bad year with investments, you can use losses to offset gains. Excess losses can be carried over to future years.

Make sure you’re not leaving money on the table. Contact us today for a comprehensive review of your tax situation and maximize your refund!