Tax Deductions You Might Be Missing

Nobody wants to leave money on the table. Let’s review common tax deductions you might be missing so you can maximize your savings this tax season! Tax code is full of deductions that can help lower your taxable income. The problem? Most people don’t even know they exist. We’re not saying you need to memorize the tax code, but it does help to know which deductions you might be missing. So let’s break down the ones you should double-check before filing your return.

Student Loan Interest Deduction 

If you’re still paying off student loans, you may be able to deduct up to $2,500 of interest paid, even if you don’t itemize deductions.

Who Qualifies?

• You must have paid interest on a qualified student loan in the tax year.
• Your income must be below the limit.
• You can’t be claimed as a dependent on someone else’s return.

If you paid student loan interest, you should receive a Form 1098-E from your lender. If you didn’t get one, check your loan statement.

Educator Expenses Deduction 

Teachers and educators often pay out of pocket for classroom supplies, so the IRS gives them a little break. Up to $300 per year may be deducted (or $600 if you and your spouse are both teachers) for classroom expenses.

Who Qualifies?

• K-12 teachers, instructors, counselors, or principals.
• Those who worked at least 900 hours in a school year.
• Purchases must be necessary and work-related (think books, supplies, software – but not your morning coffee).

Keep your receipts! The IRS doesn’t require them to claim this deduction, but they can if you’re audited.

Child and Dependent Care Credit 

If you paid for daycare, babysitters, summer camp, or after-school care so you could work, you may qualify for this tax credit. It’s worth up to 35% of $3,000 per child (or $6,000 for two or more children).

Who Qualifies?

• You must have earned income.
• The child must be under 13 years old, or a dependent with disabilities.
• The caregiver cannot be a spouse or another dependent, so paying your teenager to watch your younger kid doesn’t count. 

The Child Tax Credit is different from this, so see if you qualify for both!

Medical Expenses Deduction

If you had significant medical expenses last year, you might be able to deduct anything that exceeds 7.5% of your adjusted gross income (AGI).

What Qualifies?

• Doctor visits, hospital stays, and prescriptions.
• Dental and vision expenses.
• Health insurance premiums, if not employer-covered.

This deduction is only available if you itemize instead of taking the standard deduction.

Job Search Expenses

If you were looking for a new job in your current field, some of your job search expenses could be deductible, including:

• Resume printing and mailing costs.
• Travel expenses for interviews.
• Employment agency fees.

This only applies if you itemize, and the job must be in your existing career field. Unfortunately this deduction doesn’t apply to changing careers.

Gambling Losses, But Only If You Report Winnings!

Yes, you can deduct gambling losses, but only if you also report gambling winnings.

How It Works:

• You can deduct up to the amount of gambling winnings reported.
• You must keep receipts or a gambling diary as proof.

Casinos issue Form W-2G for large winnings, but all gambling income is taxable, even if it’s not reported to you.

Don’t Leave Money on the Table!

There’s no reason to overpay on taxes when legitimate deductions can lower your taxable income and boost your refund. Whether you’re a freelancer, student, homeowner, or parent, there’s a deduction out there for you.

Are you unsure if you’re missing one? That’s where we come in! Our tax professionals can help you maximize deductions, minimize stress, and make tax season way less painful. Let’s get you every deduction you deserve!