When it comes to filing taxes, maximizing your deductions is a critical step toward reducing your tax burden and keeping more of your hard-earned money. However, many taxpayers leave money on the table by overlooking deductions they’re entitled to claim. Here’s a list of the top 10 commonly missed tax deductions that you should keep in mind when preparing your next return:

1. State Sales Taxes

Did you know you can deduct either state income taxes or state sales taxes on your federal return? If you live in a state without income tax or made large purchases (like a car or boat), the sales tax deduction could save you a significant amount. Use the IRS’s guide to deductible taxes to learn how to calculate this deduction.

2. Medical Expenses

Out-of-pocket medical expenses exceeding 7.5% of your adjusted gross income (AGI) are deductible. This includes costs for doctor visits, prescriptions, dental care, mental health therapy, and even mileage driven to medical appointments. Many forget about these expenses or underestimate their total.

3. Charitable Contributions

While most taxpayers remember to deduct cash donations, many forget about non-cash donations like clothing or household items given to charity. Additionally, expenses incurred while volunteering, such as mileage or supplies purchased for a charitable event, are also deductible.

4. Educator Expenses

If you’re a teacher, counselor, or school administrator, you can deduct up to $300 for classroom supplies purchased out of pocket. Both public and private school educators are eligible for this deduction, which can include items like books, software, and art supplies.

5. Job Hunting Costs

If you were searching for a job in your current field, you can deduct expenses like resume preparation, travel for interviews, and professional placement services. This deduction is often overlooked, but it can add up if you were actively job hunting.

6. Home Office Deduction

If you’re self-employed and use part of your home exclusively for work, you may qualify for a home office deduction. This includes a percentage of utilities, rent or mortgage interest, property taxes, and even repairs. The simplified method allows you to claim $5 per square foot, up to 300 square feet.

7. Student Loan Interest

Many taxpayers forget to claim the deduction for student loan interest, which allows you to deduct up to $2,500 of interest paid, even if you don’t itemize. This deduction phases out at higher income levels, so check if you qualify.

8. Energy-Efficient Home Improvements

Certain energy-saving upgrades to your home, such as installing solar panels, energy-efficient windows, or insulation, may qualify for federal tax credits. These credits are more valuable than deductions because they directly reduce your tax liability.

9. Self-Employment Expenses

Freelancers and self-employed individuals often miss deductions for business-related expenses such as software subscriptions, professional memberships, internet costs, and business meals. Don’t forget about the self-employment tax deduction, which allows you to deduct the employer portion of Social Security and Medicare taxes.

10. Tax Preparation Fees

Fees paid to a tax preparer, software, or even electronic filing fees for the previous year’s return may be deductible if you itemize. While the deduction for miscellaneous itemized expenses was suspended through 2025 for most taxpayers, businesses and self-employed individuals can still deduct these costs.

Final Thoughts

Missing out on deductions can mean paying more taxes than necessary. To ensure you’re taking advantage of every deduction available, keep detailed records, save receipts, and consult a tax professional. Tax laws are complex and constantly changing, so working with an expert can help you uncover opportunities to reduce your tax liability.

At Provident CPAs, we specialize in proactive tax planning to ensure you don’t leave money on the table. Contact us today to see how we can help you minimize your tax burden and maximize your financial potential.