5 Common Tax Deductions You Might Be Missing

Ensuring you take advantage of every deduction you’re entitled to can lead to significant savings when filing taxes. Unfortunately, many taxpayers miss out on deductions simply because they’re unaware of them. Here are five commonly overlooked tax deductions that could save you money:

1. Charitable Donations

Many people know that charitable donations to qualified organizations are tax-deductible, but they might need to realize the full extent of what can be deducted. Beyond cash contributions, you can deduct the fair market value of any goods you donate, such as clothing or household items. Additionally, out-of-pocket expenses incurred while volunteering, like travel costs, can be deductible. Just make sure to keep your receipts and any relevant documentation.

2. Education Expenses

The IRS offers several deductions and credits for students and their families, which can help lower the cost of higher education. The American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) are benefits. Furthermore, even if you’re not a student, you can deduct expenses for work-related education if they maintain or improve your job skills. Tuition, books, supplies, and sometimes even transportation can be considered qualifying expenses.

3. Home Office Deductions

The home office deduction has become more relevant for many taxpayers with the rise of remote work. If…