Are You Leaving Money on the Table?

Every year, millions of Americans pay more in taxes than they legally need to. The reason? They simply don't know about all the deductions available to them. As an Enrolled Agent, I've seen this happen repeatedly — and it's completely avoidable.

Here are 12 deductions that my clients most commonly overlook.

1. Home Office Deduction

If you use part of your home exclusively and regularly for business, you may qualify for the home office deduction. This applies to both homeowners and renters, and covers a proportionate share of rent, utilities, insurance, and depreciation.

The IRS offers two methods: the simplified method ($5 per square foot, up to 300 sq ft) and the regular method (actual expenses × business-use percentage).

2. Student Loan Interest

You can deduct up to $2,500 in student loan interest per year — even if you don't itemize deductions. This is an "above-the-line" deduction, meaning it reduces your adjusted gross income directly.

3. State and Local Taxes (SALT)

You can deduct up to $10,000 ($5,000 if married filing separately) of state and local taxes, including income taxes or sales taxes, and property taxes.

4. Medical and Dental Expenses

Medical expenses that exceed 7.5% of your adjusted gross income are deductible. This includes insurance premiums, prescriptions, and out-of-pocket costs.

5. Charitable Contributions

Donations to qualifying organizations are deductible. This includes cash, property, and even mileage driven for charitable purposes (14 cents per mile in 2024).

6. Educator Expenses

Teachers and eligible educators can deduct up to $300 ($600 for joint filers who are both educators) for classroom supplies — directly from income, no itemizing needed.

7. Self-Employment Taxes

Self-employed individuals pay both the employee and employer portions of Social Security and Medicare taxes. The good news: you can deduct half of that as a business expense.

8. Health Insurance Premiums (Self-Employed)

If you're self-employed, you can deduct 100% of health insurance premiums for yourself, your spouse, and your dependents — another above-the-line deduction.

9. Retirement Contributions

Contributions to a traditional IRA (up to $7,000 in 2024, $8,000 if 50+), 401(k), SEP-IRA, or SIMPLE IRA reduce your taxable income significantly.

10. Energy-Efficient Home Improvements

The Inflation Reduction Act expanded energy tax credits. You may qualify for credits on solar panels, heat pumps, energy-efficient windows, and more through the Energy Efficient Home Improvement Credit.

11. Investment Losses (Tax-Loss Harvesting)

Capital losses can offset capital gains dollar-for-dollar. If losses exceed gains, you can deduct up to $3,000 against ordinary income — and carry forward any remaining losses.

12. Professional Development and Education

Work-related education expenses that maintain or improve your current job skills may be deductible as a business expense, even if they lead to a degree.

Bottom Line

Tax deductions exist to legally reduce what you owe. The key is knowing they exist. If you're unsure which deductions apply to your situation, consulting with an Enrolled Agent can save you far more than the consultation costs.