Discover Overlooked Tax Deductions

Many people who work from home may be eligible for a home office deduction, which can include a portion of expenses such as rent, utilities, and internet costs. To qualify, the space must be used exclusively for business purposes.

Unemployed individuals who are seeking a new job may be able to deduct expenses related to the job search, such as the cost of resume services, travel to interviews, and job placement agency fees. This deduction is limited to expenses that exceed 2% of your adjusted gross income.

If you are still paying off your student loans, you may be able to deduct up to $2,500 of the interest paid on those loans. To qualify, your income must fall below a certain threshold.

Many people remember to deduct the cash donations they make to charitable organizations, but they often overlook the deductions for non-cash contributions, such as donated clothes, household items, or stock donations. Be sure to keep detailed records and get receipts for non-cash contributions.

If you are taking classes to improve your job skills or to further your education, you may be eligible to deduct the costs of tuition, books, and other necessary supplies. This deduction applies to both undergraduate and graduate coursework.

A wide range of medical expenses can be deducted, including health insurance premiums, prescription medications, and even travel expenses related to medical care. Keep in mind that the threshold for deducting medical expenses is quite high, so it may not benefit everyone.

If you moved due to a change in your job location, you may be able to deduct your moving expenses, including the cost of packing, shipping, and transporting your belongings. There are specific criteria that must be met in order to qualify for this deduction.

Homeowners who have made energy-efficient improvements to their homes, such as installing solar panels or energy-efficient windows, may be eligible for tax credits. These credits can help offset the cost of the improvements and are good for the environment too.

For taxpayers who live in states with no income tax, deducting state sales taxes instead can be beneficial. This is especially true for large purchases, such as a car or boat, where the sales tax paid can result in a larger deduction than the state income tax.

If you have unreimbursed expenses related to your job, such as travel, meals, uniforms, or work-related education, you may be eligible for a deduction. Keep detailed records and receipts to back up your claims.

Parents who pay for child care or other dependent care while they work or look for work may be eligible for a tax credit. The credit can cover a percentage of the expenses up to a certain limit, so it’s important to keep track of all related costs.

While it may seem counterintuitive, gambling losses can be deducted if you itemize your deductions. However, the amount of losses deducted cannot exceed the amount of gambling income reported on your return.

While many people mistakenly include jury pay in their taxable income, if you have to give your employer any jury pay you received, you can deduct that amount from your taxable income.

Adults who pay for the care of their parents, as long as certain criteria are met, may be able to claim a deduction for these costs.

The fees paid for tax preparation services, software, and online services can also be deducted as a miscellaneous itemized deduction, subject to certain limitations.

Individuals who have paid alimony to a former spouse may be able to deduct these payments, as long as they meet the IRS’s specific criteria for alimony.