Common Tax Deductions You Might Be Missing
Don't leave money on the table. Learn about tax deductions that could reduce your bill.
Tax deductions reduce your taxable income, potentially saving you hundreds or thousands of dollars. Here are deductions many people overlook.
Standard vs. Itemized Deductions
The standard deduction for 2024:
- Single: $14,600
- Married Filing Jointly: $29,200
Only itemize if your total deductions exceed the standard deduction.
Commonly Missed Deductions
1. Home Office Deduction
If you're self-employed and use part of your home exclusively for business, you may qualify.
2. Student Loan Interest
Deduct up to $2,500 in student loan interest, even if you don't itemize.
3. Charitable Contributions
Cash and non-cash donations to qualified organizations. Keep receipts!
4. Medical Expenses
Expenses exceeding 7.5% of your adjusted gross income may be deductible.
5. State and Local Taxes (SALT)
Up to $10,000 in state income, sales, and property taxes.
Tax Credits vs. Deductions
- Deductions reduce taxable income
- Credits reduce tax owed dollar-for-dollar
Credits are generally more valuable. Don't miss:
- Earned Income Tax Credit
- Child Tax Credit
- Education Credits
Keep Good Records
Document everything throughout the year. Use apps to track expenses and save receipts digitally.