Tax Income

If you work from home, you may qualify for a home office deduction. This applies to a dedicated space used exclusively for business purposes. You can deduct expenses like rent, utilities, and internet.

Out-of-pocket medical expenses exceeding 7.5% of your adjusted gross income can be deducted. These include doctor visits, prescriptions, dental care, and even mileage to medical appointments.

Donations to qualified charities, including cash, goods, or even mileage driven for charitable purposes, can be deducted. Make sure you keep receipts or documentation for these contributions.

Instead of deducting state income tax, taxpayers in states with no income tax can deduct state sales tax. This is especially beneficial if you’ve made big purchases like cars or appliances.

Up to $2,500 of student loan interest paid during the year can be deducted. This applies even if someone else, like a parent, made payments on your behalf.

Expenses incurred while searching for a new job in your current field can be deducted. These include resume preparation, travel for interviews, and job placement agency fees.

The Lifetime Learning Credit allows you to deduct up to $2,000 for tuition and fees for you, your spouse, or your dependents to improve job skills or further education.

If you contribute to a traditional IRA, you may be eligible for a deduction. Additionally, low to moderate-income earners may qualify for the Saver’s Credit.

For active-duty military members, moving expenses related to a permanent change of station can be deducted. This includes transportation, lodging, and storage costs.

If you paid points to lower the interest rate on your mortgage, you might be able to deduct them. This deduction can apply whether the points were paid upfront or financed into the loan.