Want to maximize your refund this tax season? You’re not alone—but many taxpayers miss out on hundreds (or thousands!) of dollars by overlooking lesser-known deductions. From home office costs to medical expenses, this guide reveals 15 overlooked tax deductions the IRS won’t advertise for you. Whether you’re self-employed, a homeowner, or a parent, these write-offs can slash your taxable income and boost your refund. Let’s uncover the hidden gems!
Table of Contents
15 Overlooked Tax Deductions to Claim Now
Home Office Expenses
What It Covers: Rent, utilities, and internet costs for a dedicated workspace.
How to Claim: Use Form 8829 if self-employed. Calculate $5/sq ft (up to 300 sq ft).
Medical Expenses
What It Covers: Out-of-pocket costs exceeding 7.5% of your adjusted gross income (e.g., dental work, prescriptions, mileage to appointments).
How to Claim: Itemize deductions on Schedule A.
Student Loan Interest
What It Covers: Up to $2,500 in interest paid by you or someone else (e.g., a parent).
How to Claim: Report on Form 1040, even if you don’t itemize.
Charitable Contributions
What It Covers: Cash donations, goods, and mileage driven for volunteer work (14 cents/mile).
How to Claim: Keep receipts and use Form 8283 for non-cash gifts over $500.
State Sales Tax
What It Covers: State income tax or sales tax paid—whichever saves you more.
How to Claim: Use the IRS Sales Tax Deduction Calculator and itemize.
Job Search Costs
What It Covers: Résumé prep, travel to interviews, and career coaching (same field only).
How to Claim: Itemize as a miscellaneous deduction (subject to 2% AGI floor).
Educator Expenses
What It Covers: Up to $300 spent on classroom supplies (K-12 teachers).
How to Claim: Deduct directly on Form 1040.
Energy-Efficient Home Upgrades
What It Covers: Solar panels, ENERGY STAR windows, and HVAC systems (30% credit).
How to Claim: Use Form 5695 for Residential Energy Credits.
Childcare Costs
What It Covers: Summer camp, daycare, and babysitters for kids under 13.
How to Claim: Use the Child and Dependent Care Credit (up to $3,000 per child).
Health Savings Account (HSA) Contributions
What It Covers: Contributions to an HSA are capped at $4,150 for individuals and $8,300 for families in 2024.
How to Claim: Deduct on Form 8889.
Gambling Losses
What It Covers: Losses up to the amount of gambling winnings.
How to Claim: Itemize and keep detailed records (e.g., casino receipts).
Military Reservist Travel
What It Covers: Lodging, meals, and mileage for drills over 100 miles from home.
How to Claim: Deduct on Form 2106.
Home Mortgage Points
What It Covers: Points paid to lower your mortgage interest rate (for primary homes).
How to Claim: Deduct annually over the loan’s life or fully in the year of purchase.
Rental Property Depreciation
What It Covers: Wear and tear on rental properties (e.g., roofs, appliances).
How to Claim: Use Form 4562 to calculate depreciation.
Pet Moving Costs
** It Covers**: Transporting pets during a military PCS move or job relocation.
How to Claim: Deduct as part of moving expenses (if eligible).
FAQs: Overlooked Tax Deductions
Q: Can I claim deductions without itemizing?
A: Yes! Some write-offs (like student loan interest and educator expenses) are above-the-line deductions on Form 1040.
Q: Do I need receipts for charitable donations?
A: Yes—the IRS requires receipts for cash gifts over $250 and appraisals for non-cash items over $5,000.
Q: Are gym memberships deductible?
A: Only if prescribed by a doctor for a specific medical condition (e.g., obesity, heart disease).
Q: Can I deduct work-from-home costs as an employee?
A: No—the Tax Cuts and Jobs Act suspended this deduction for W-2 employees through 2025.
Final Tips to Maximize Your Refund
- Track Expenses Year-Round: Use apps like QuickBooks Self-Employed or Expensify.
- Consult a Tax Pro: CPA guidance pays for itself if you own rentals, freelance, or have complex investments.
Review State Rules: Some states allow deductions the IRS doesn’t (e.g., union dues).
Get expert help with your tax returns today and ensure accuracy and peace of mind—browse top-rated professionals now!