Top 10 Tax Deductions People Miss Every Year (And How to Find Yours)

Most filers claim the obvious deductions and stop there, leaving money on the table every year. Here are ten that get missed most often, whether you file with software, a preparer, or on your own.

1. State sales tax instead of state income tax. If you itemize, you can choose to deduct state and local sales tax instead of income tax, which can help if you made a big purchase or live in a state with no income tax.
2. Student loan interest. You can deduct up to $2,500 in student loan interest as an above-the-line deduction, even if you don’t itemize, subject to income limits.
3. HSA contributions. Contributions made outside of payroll deductions (for example, directly to your HSA provider) are still deductible above the line if you have a qualifying high-deductible health plan.
4. Self-employed health insurance premiums. Self-employed filers can often deduct 100% of health insurance premiums above the line, a deduction that’s easy to miss if you’re used to a W-2 job.
5. Charitable mileage and out-of-pocket costs. Miles driven for volunteer work and unreimbursed supplies bought for a charity are deductible, not just cash donations.
6. The retirement Saver’s Credit. Lower and middle-income filers who contribute to an IRA or employer plan may qualify for a credit worth up to a percentage of their contribution, on top of the deduction itself.
7. Home office deduction for the self-employed. Available to self-employed filers with a dedicated workspace, but frequently overlooked by people who assume it no longer exists after tax law changes.
8. Educator expenses. Eligible teachers can deduct out-of-pocket classroom supply costs above the line, without needing to itemize.
9. Medical expenses above the threshold. Filers with high medical costs forget that once expenses exceed 7.5% of adjusted gross income, the excess is deductible if you itemize.
10. Prior-year carryovers. Capital losses, charitable contributions above annual limits, and some credits can carry forward from prior years — easy to lose track of if you switch preparers or software.

How to Find the Ones That Apply to You

Not every deduction on this list applies to every filer, and eligibility rules and dollar limits can change year to year. Use our free calculators and AI Deduction Finder to check which of these actually apply to your specific situation before you file.