The Most Overlooked Tax Deductions That Could Save You Thousands
Every year, taxpayers miss out on deductions that could significantly reduce their tax bill—or even increase their refund. Whether you’re a business owner, freelancer, or individual filer, knowing which deductions apply to you can make all the difference.
At 1776 Tax, I specialize in helping clients uncover every possible deduction to keep more money in their pocket. Let’s explore some of the most commonly overlooked tax deductions and how you can take advantage of them.
1. Home Office Deduction
If you use your home exclusively for business, you may qualify for a home office deduction. This applies to small business owners, freelancers, and even employees working remotely under certain conditions. The IRS allows you to deduct a portion of your rent/mortgage, utilities, and internet costs based on the square footage of your office.
2. Business Startup Costs
If you started a new business this year, you can deduct up to $5,000 in startup expenses (legal fees, marketing, initial inventory, etc.). Many new entrepreneurs miss this deduction, unaware that it applies to their early investments.
3. Health Insurance Premiums (Self-Employed)
If you’re self-employed and pay for your own health insurance, you may be able to deduct 100% of your health, dental, and long-term care insurance premiums—without having to itemize deductions.
4. Student Loan Interest
Even if you don’t itemize deductions, you can still deduct up to $2,500 in student loan interest. This is especially valuable for young professionals working to pay off debt.
5. Continuing Education & Professional Development
Many professionals overlook deductions for industry-related courses, certifications, and even subscriptions to trade journals. If your education directly enhances your career or business, it’s likely deductible.
6. Mileage and Vehicle Expenses
If you use your car for business, charitable work, or medical purposes, you may be eligible for mileage deductions. The 2024 IRS mileage rates are:
• 65.5 cents per mile for business use
• 22 cents per mile for medical/moving expenses
• 14 cents per mile for charitable use
7. Energy-Efficient Home Upgrades
If you made energy-efficient upgrades to your home (solar panels, new insulation, energy-efficient windows), you could qualify for federal tax credits. These credits directly reduce your tax liability dollar for dollar.
8. Child and Dependent Care Credit
If you pay for childcare or care for a dependent adult, you may qualify for the Child and Dependent Care Credit, covering up to $8,000 in expenses.
9. Retirement Contributions (Even If You’re Self-Employed)
Many people forget that contributions to traditional IRAs and self-employed retirement plans (like a SEP IRA or Solo 401k) are tax-deductible. This is one of the most effective ways to lower taxable income while saving for the future.
10. State and Local Taxes (SALT Deduction)
If you paid state and local taxes, including property taxes, you may be able to deduct them—up to a cap of $10,000.
Final Thoughts: Are You Maximizing Your Deductions?
If you’re unsure whether you’re claiming all the tax deductions available to you, don’t wait until tax season to find out. At 1776 Tax, I ensure that every client gets the maximum refund possible while staying 100% compliant with IRS guidelines.
💡 Book a free consultation today to uncover deductions you may be missing and start saving more on your taxes.
