Tax deductions can significantly reduce your taxable income, but many taxpayers miss out on legitimate deductions. Here are five common deductions that are often overlooked:
-
Home Office Deduction: If you work from home, you may be able to deduct a portion of your rent, mortgage interest, utilities, and other home expenses.
-
Medical and Dental Expenses: Unreimbursed medical and dental expenses that exceed 7.5% of your adjusted gross income are deductible.
-
Educational Expenses: Tuition, fees, and educational materials for courses that maintain or improve your job skills are deductible.
-
Charitable Contributions: Don't forget to deduct donations to qualified charitable organizations, including cash donations and non-cash items.
-
Business Losses: If you have a side business, losses from that business can offset other income.
Remember to keep detailed records and receipts for all deductions. Consult with a tax professional to ensure you're claiming all eligible deductions.