While every individual's tax situation is unique, here are 10 common tax deductions that many people may overlook:
1. Home office deduction: If you use a portion of your home exclusively for business purposes, you may be eligible to deduct expenses such as rent, utilities, and maintenance.
2. Student loan interest deduction: You can deduct up to $2,500 in interest paid on qualified student loans, even if you don't itemize deductions.
3. State sales tax deduction: If you live in a state with no income tax or made significant purchases, you may be able to deduct state sales tax instead of state income tax.
4. Medical expenses: You can deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI), including health insurance premiums, prescription medications, and medical treatments not covered by insurance.
5. Charitable contributions: Donations to qualified charities can be deducted, including cash donations, property donations, and mileage driven for volunteer work.
6. Educator expenses: Teachers and educators can deduct up to $250 for out-of-pocket expenses on classroom supplies and materials.
7. Self-employment expenses: If you're self-employed, you can deduct business-related expenses such as office supplies, advertising costs, and professional fees.
8. Moving expenses: If you moved for a job and meet certain distance and time requirements, you may be able to deduct moving expenses, including transportation, storage, and lodging costs.
9. Energy-efficient home improvements: Certain energy-efficient upgrades to your home, such as installing solar panels or energy-efficient windows, may qualify for tax credits.
10. Job search expenses: If you were searching for a job in the same field, you may be able to deduct expenses such as resume preparation, travel costs for interviews, and job placement agency fees.
It's important to note that tax laws and deductions can change, so it's always a good idea to consult with a tax professional or refer to the IRS website for the most up-to-date information and guidance.