15 Tax Deductions Most Americans Miss Every Year
The IRS doesn't remind you of deductions you're entitled to. These 15 overlooked write-offs could reduce your tax bill by $1,000 or more.
Financial Writer
1. Home Office Deduction
If you're self-employed and work from home, you can deduct a portion of rent, utilities, and internet — calculated by the percentage of your home used exclusively for work. The simplified method allows $5/sq ft up to 300 sq ft ($1,500 max).
2. Student Loan Interest
You can deduct up to $2,500 of student loan interest paid annually, even if you don't itemize. This is an above-the-line deduction — available to anyone below the income phaseout.
3. Health Insurance Premiums (Self-Employed)
Self-employed individuals can deduct 100% of health, dental, and long-term care insurance premiums for themselves and their family — one of the most valuable deductions for freelancers and business owners.
4. Charitable Contributions
Cash donations, mileage to volunteer activities (14¢/mile), and donated goods at fair market value. Keep receipts for everything over $250.
5. Energy-Efficient Home Improvements
The Inflation Reduction Act extended and expanded credits for heat pumps, electric vehicle chargers, insulation, and more. The residential clean energy credit can be up to 30% of qualifying costs.
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