Every year, Americans leave billions of dollars on the table by missing legitimate tax deductions. Here are the most commonly overlooked ones.
Home Office Deduction: If you work from home — even part-time for a side hustle — you can deduct a portion of your rent, utilities, and internet based on the square footage of your workspace.
Student Loan Interest: You can deduct up to $2,500 in student loan interest even if you don’t itemize.
Medical Expenses: If your out-of-pocket medical costs exceed 7.5% of your adjusted gross income, the excess is deductible.
Charitable Contributions: Don’t just track cash donations. Miles driven for charity (14 cents/mile), donated goods, and even out-of-pocket expenses for volunteer work count.
State Sales Tax: If you live in a state without income tax, you can deduct state sales tax instead. The IRS provides tables to estimate this.