Top 5 Personal Tax Deductions You Might Be Missing
- Jean Pierre Barbatchano
- May 5
- 3 min read
When it comes to filing taxes, many individuals focus on the basics—W-2s, standard deductions, and hoping for a decent refund. But what if you’re leaving hundreds (or even thousands) of dollars on the table simply by overlooking deductions you qualify for?
Whether you’re a salaried employee, self-employed, or retired, these commonly missed tax deductions could help reduce your taxable income and potentially increase your refund. Let’s break down the Top 5 deductions you might be missing—plus a bonus tip that could save you even more.
1. Student Loan Interest Deduction
Even if you’re no longer in school, your education could still be paying off—literally. If you’ve been making payments on a qualified student loan, you may be eligible to deduct up to $2,500 in student loan interest paid during the tax year.
Here’s the best part:
You don’t need to itemize to claim this deduction.
You qualify if your income falls under $90,000 (single) or $180,000 (married filing jointly).
Tip: Many people miss this deduction because the interest is paid automatically, and they forget to include Form 1098-E from their loan servicer.
2. Medical and Dental Expenses
If you had significant out-of-pocket medical costs, don’t assume it’s all a loss. The IRS allows you to deduct qualified unreimbursed medical expenses that exceed 7.5% of your adjusted gross income (AGI).
Eligible expenses include:
Doctor visits and surgeries
Prescription medications
Mental health services
Dental and vision care
Travel expenses for medical treatment
Medical insurance premiums (if not paid pre-tax)
Example: If your AGI is $60,000, only expenses over $4,500 (7.5%) can be deducted. It may not apply to everyone—but for families dealing with large medical bills, it can be a big help.
3. Charitable Contributions
While recent tax law changes raised the standard deduction (making itemizing less common), charitable donations are still deductible for those who itemize.
Deductible donations include:
Cash donations to qualified nonprofits
Donated goods (e.g., clothing, furniture, electronics)
Miles driven for charitable purposes (currently $0.14/mile)
Pro Tip: Always get a receipt for donations and keep documentation of donated items with estimated value. Tools like TurboTax’s ItsDeductible can help you estimate fair market values.
4. State and Local Taxes (SALT)
If you’re itemizing, you can deduct state and local income taxes or sales taxes, along with property taxes. However, there’s a $10,000 limit ($5,000 if married filing separately).
Why this matters:
If you live in a state with high income taxes, this deduction can be significant.
If you live in a state with no income tax (e.g., Florida, Texas, Nevada), you can opt to deduct state and local sales tax instead.
Planning tip: If you made a large purchase—like a vehicle or home renovation—keep your receipts. The sales tax from big-ticket items can boost your deduction.
5. Traditional IRA Contributions
Saving for retirement is smart—but even smarter is reducing your current tax bill while doing it.
If you contribute to a Traditional IRA, you may be eligible to deduct up to:
$6,500 if under age 50
$7,500 if age 50 or older
You can still make contributions up to the tax filing deadline (typically April 15 of the following year), which makes it a great last-minute tax-saving strategy. Just note: deductions may be limited based on income and whether you (or your spouse) are covered by a workplace retirement plan.
Bonus: Don’t Forget Tax Credits
While not deductions, tax credits reduce your tax dollar for dollar and can be even more powerful.
Examples include:
Child Tax Credit – up to $2,000 per child under 17
Earned Income Tax Credit (EITC) – worth up to $7,430 depending on income and family size
Saver’s Credit – for low- to moderate-income taxpayers contributing to retirement accounts
Unlike deductions, credits directly lower your tax due—and in some cases, they’re refundable, meaning you get a refund even if you owe no taxes.
Final Thoughts: Get the Refund You Deserve
Tax time doesn’t have to be stressful or costly—especially when you know what to look for. These deductions and credits are designed to ease your financial burden and reward smart money decisions. The problem is, many taxpayers don’t realize they qualify.
At JPB Financial Services, we help individuals and families navigate the complexities of tax laws and make sure they’re not overpaying. Whether you're filing late, planning for next year, or just want a second look at your return—we’ve got your back.
Ready to maximize your tax savings?
Book a consultation with JPB Financial Services today and let us help you take control of your finances—one deduction at a time.
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