10 Tax Deductions Almost Everyone Misses
The average taxpayer overpays by $400-1,000 because they miss these commonly overlooked deductions.
1. State sales tax deduction (instead of state income tax — better for residents of states with no income tax like Texas, Florida, Nevada). 2. Student loan interest ($2,500 max deduction even if you do not itemize). 3. Health Savings Account contributions ($4,150 individual, $8,300 family — triple tax advantage). 4. Home office deduction for self-employed ($5/sq ft up to $1,500 simplified method). 5. Charitable mileage (14 cents/mile for volunteer driving).
6. Job search expenses (if itemizing and searching in the same field). 7. Teacher classroom expenses ($300 above-the-line deduction — no itemizing needed). 8. Energy-efficient home improvements (tax credits for insulation, windows, heat pumps). 9. Medical expenses above 7.5% of AGI (dental, vision, prescriptions, therapy, and mileage to appointments). 10. IRA contributions for non-working spouses (Spousal IRA — $7,000 even with zero earned income if filing jointly).
Above-the-Line vs Itemized
Some deductions (student loan interest, HSA, IRA, teacher expenses) are above-the-line — you get them even with the standard deduction. Others require itemizing, which only makes sense if your itemized deductions exceed $14,600 (single) or $29,200 (married filing jointly). Most taxpayers benefit from the standard deduction, but should still claim every above-the-line deduction available.