TOP TEN: Missed Tax Deductions You Don’t Want to Overlook

When it comes to filing your taxes, missing a deduction is like leaving free money on the table. Even if you use tax software or a preparer, there are common deductions that slip through the cracks—especially if you don’t keep good records or know what to look for. Here are some of the top deductions individual taxpayers often miss.

1.State Sales Tax or Income Tax Paid

If you itemize, you can choose to deduct either state income tax paid or state sales tax paid. For people in states without an income tax, sales tax deductions can be substantial—especially if you made large purchases like a car, boat, or major appliances.

Pro Tip: The IRS has a calculator to help estimate your sales tax deduction if you didn’t keep every receipt.

2.Out-of-Pocket Charitable Contributions

Most people remember to deduct cash donations, but small out-of-pocket expenses for charity work—like supplies you bought for a school fundraiser or mileage driven for volunteer work—are also deductible.

Example: Drove 100 miles to volunteer? That’s worth 14 cents per mile in 2024.

3.Student Loan Interest Paid by Someone Else

If someone else (like a parent) makes your student loan payments, the IRS treats it as if they gave you the money and you paid the loan yourself. You may still qualify to deduct up to $2,500 in interest—if you’re not claimed as a dependent.

4.Medical Miles and Travel

In addition to unreimbursed medical expenses, you can deduct mileage for medical appointments, parking fees, and even tolls. For 2024, that’s 21 cents per mile for medical-related travel.

5.Job-Hunting Expenses (Certain Conditions)

If you’re looking for a new job in your current field, certain expenses—like résumé services, career coaching, or travel for interviews—can sometimes qualify. These rules can be tricky, so it’s worth confirming with your tax pro before claiming.

6.Home Office Deduction (Even for Part-Time Side Gigs)

If you have a dedicated space in your home used exclusively for work, you may qualify for the home office deduction—even if your small business or freelance work is just part-time. The simplified method allows $5 per square foot (up to 300 square feet).

7.Energy-Efficient Home Improvements

The Inflation Reduction Act expanded tax credits for energy-saving upgrades—like solar panels, efficient HVAC systems, insulation, and windows. Credits can be worth hundreds (or even thousands) of dollars.

8.Educator Expenses (Not Just for Teachers)

Teachers, counselors, principals, and aides working in K–12 schools can deduct up to $300 for classroom supplies they paid for themselves. If both spouses are eligible educators, the limit is $600 per return.

9.Self-Employment Expenses You Pay Personally

If you have a side hustle, don’t forget to deduct expenses like cell phone use, internet, software subscriptions, professional memberships, or even part of your utilities—if they’re used for your business.

10.State Tax Refund from a Prior Year

Many people forget that if you itemized last year and received a state tax refund, it needs to be reported this year—it may be taxable. While not a deduction, remembering it helps avoid costly IRS letters.

The Bottom Line

Tax rules change, and the deductions available to you depend on your personal situation. The best way to make sure you don’t miss out? Keep organized records year-round and work with a tax professional who asks the right questions.

💡 At Oddo Financial Services, we specialize in helping individuals keep more of their hard-earned money by finding every deduction and credit they’re legally entitled to. We don’t just prepare your return—we work with you year-round to make sure next tax season is smoother (and maybe even a little less expensive).

📅 Ready to see what you’ve been missing? Let’s schedule a conversation.