10 Tax Deductions Most People Forget About

A lot of people miss out on tax deductions they could be using. These deductions can help lower your taxable income and save you money. Keeping track of certain expenses, like medical travel or work costs, can make a big difference. A little effort now could mean paying less when tax season comes.

1. State Sales Tax

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You can deduct state sales tax if you live in a state without income tax. Large purchases like cars or appliances can add up to significant savings. Keep your receipts to maximize this deduction.

2. Out-of-Pocket Charitable Contributions

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Donations are not just about cash. The cost of supplies bought for a charity or mileage driven for volunteer work also counts. Small expenses add up, so keep track of them throughout the year.

3. Job Search Expenses

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Certain costs are deductible if you search for a job in the same field. Resume printing, travel for interviews, and career coaching might qualify. Even small job-related expenses can reduce your tax bill.

4. Medical Travel Costs

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Medical mileage, parking fees, and even lodging for out-of-town treatments can be deducted. The IRS sets a per-mile rate for medical-related travel. If you or a dependent have frequent doctor visits, this deduction adds up quickly.

5. Student Loan Interest (Even if Someone Else Pays)

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If someone else pays your student loan, the IRS treats it like they gave you the money first. That means you can still deduct up to $2,500 in interest. This applies even if you are no longer a student.

6. Home Office Deduction

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If you work from home, part of your rent, utilities, and internet expenses might be deductible. However, the space must be used exclusively for work. Even a small deduction for your home office can lead to big savings.

7. Energy-Efficient Home Improvements

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Installing solar panels, energy-efficient windows, or insulation can qualify for tax credits. These deductions encourage eco-friendly upgrades while saving you money. Check if your improvements meet IRS guidelines.

8. Educator Expenses

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Teachers often pay for classroom supplies out of pocket. The IRS allows educators to deduct up to $300 for school-related expenses. If you are an educator, this is an easy way to lower your taxable income.

9. Gambling Losses (If You Report Winnings)

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Lost money at the casino? You can deduct gambling losses, but only up to the amount of your reported winnings. Keeping track of wins and losses is essential for this deduction.

10. Mortgage Points

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If you paid points to lower your mortgage rate, you might qualify for a deduction. Points paid on a new home purchase are typically deductible in full. Refinancing points may need to be deducted over time.

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• tax deductions
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