The 10 Most Overlooked Tax Deductions

Don't Leave Money on the Table This Tax Season

When it comes to filing taxes, most people are focused on getting it done and avoiding mistakes—but in the rush, many miss out on deductions that could significantly lower their tax bill or increase their refund.

1. State Sales Tax (Optional Deduction)

If you live in a state without income tax—or if your sales tax payments are higher than your state income tax—you can deduct the total sales tax paid on major purchases like vehicles, boats, or home building materials.

2. Student Loan Interest Paid by Someone Else

Even if your parents (or someone else) paid your student loans, you may still be able to deduct up to $2,500 in student loan interest if you’re not claimed as a dependent.

3. Job Search Expenses

If you searched for a new job in your current field, expenses such as résumé services, travel, and employment agency fees may be deductible (though this is more applicable for prior tax years—check current IRS rules or with a tax pro).

4. Medical Miles

Driving to and from medical appointments can be deducted at the IRS-approved mileage rate. This includes trips for yourself, your spouse, or your dependents.

5. Out-of-Pocket Charitable Expenses

Did you buy supplies for a nonprofit event or drove your own car to volunteer? You can deduct mileage, supplies, and even parking fees associated with volunteering.

6. Self-Employed Health Insurance Premiums

If you're self-employed and not eligible for a health plan elsewhere, you may deduct 100% of your health insurance premiums, including dental and long-term care (within IRS limits).

7. Home Office Deduction

Do you use part of your home exclusively and regularly for business? You may qualify to deduct a portion of your rent, mortgage interest, utilities, and even depreciation.

8. Educator Expenses

Teachers (K–12) can deduct up to $300 in classroom supplies. This includes books, software, PPE, and supplemental materials—not just pencils and paper.

9. Dependent Care Credit

If you pay for daycare or after-school care so you can work or look for work, you may qualify for a credit worth up to 35% of qualifying expenses, depending on your income.

10. Casualty and Disaster Losses

If your area was declared a federal disaster area, you may be eligible to deduct losses not covered by insurance. Always consult with a tax professional to navigate this complex area.

Why These Deductions Are Missed

Many taxpayers rely on basic software or forget to tell their tax preparer about certain expenses. Others mistakenly think a deduction doesn’t apply to them. But being aware of what’s available could make a noticeable difference.

✅ Final Tip: Keep Good Records

Whether it’s mileage logs, medical receipts, or proof of donations, documentation is key. A missed receipt could mean a missed deduction—so keep a well-organized folder throughout the year.

Need Help Maximizing Your Deductions?

At Fenton Tax Help, we specialize in finding the tax breaks you deserve. Whether you're a self-employed professional, landlord, or employee with complex deductions, our expertise ensures nothing is missed.