Things You’re Not Claiming on Your Taxes—But Should Be

Tax laws and regulations can be complex, and many people might miss out on claiming deductions or credits that could potentially save them money. Here are some common items that people often overlook when filing their taxes:

1. Charitable Contributions:

• Cash donations to qualified charities.
• Non-cash donations such as clothing, household items, or furniture.
• Mileage driven for charitable purposes (14 cents per mile for 2022).

2. Medical Expenses:

• Out-of-pocket costs for medical and dental services, including deductibles, co-pays, and prescription drugs.
• Travel expenses for medical treatment (including mileage and parking).
• Health insurance premiums (if not already deducted from your paycheck pre-tax).

3. Educational Expenses:

• Student loan interest (up to $2,500).
• Tuition and fees deduction.
• Education-related expenses for teachers (such as classroom supplies).

4. Homeownership Deductions:

• Mortgage interest paid.
• Property taxes paid.
• Points paid on a new mortgage or refinancing.
• Energy-efficient home improvements (such as solar panels or energy-efficient windows).

5. Job-Related Expenses:

• Union dues.
• Work-related travel, including mileage, parking, and tolls.
• Job search expenses (resume preparation, agency fees, travel).
• Work-related education and certifications.
• Home office deduction for those who work from home (if applicable).

6. State and Local Taxes:

• State income taxes paid.
• Sales taxes paid (especially valuable in states without income tax).
• Property taxes on personal property (like a vehicle).

7. Investment Expenses:

• Investment interest expenses.
• Fees paid to financial advisors or brokers.
• Costs related to investment research or publications.

8. Child and Dependent Care Expenses:

• Daycare expenses for children under 13 while you work or look for work.
• Costs for a caregiver for a dependent parent.
• Summer day camps or similar programs for children (as long as they allow you to work).

9. Disaster and Casualty Losses:

• Deductions for losses due to a federally declared disaster (like hurricanes, floods, or wildfires).
• Losses due to theft, vandalism, or other sudden events.

10. Miscellaneous Deductions (Note: These deductions were eliminated for tax years 2018 through 2025 under the Tax Cuts and Jobs Act, but might still be relevant for some taxpayers):

• Tax preparation fees.
• Safe deposit box fees.
• Investment expenses.
• Gambling losses (to the extent of your winnings).

How to Ensure You Claim Everything You Can:

1. Keep Records: Maintain accurate records of all expenses, receipts, and documentation related to deductions and credits.

2. Use Tax Software or a Professional: Tax preparation software often prompts you to input information for commonly overlooked deductions. If your situation is more complex, consider working with a tax professional who can guide you.

3. Stay Informed: Tax laws change frequently, so it's essential to stay updated on new deductions or credits that may apply to your situation.

4. Review Your Previous Returns: If you think you might have missed claiming deductions in the past, consider amending your returns for those years to potentially receive refunds.

Remember, every taxpayer's situation is unique, so what applies to one person may not apply to another. It's always a good idea to consult with a tax professional or use reputable tax software to ensure you're taking advantage of all the deductions and credits available to you while staying compliant with tax laws.

Source: Some or all of the content was generated using an AI language model