Top Tax Deductions You’re Missing — A CPA’s Guide

Tax season doesn’t need to be stressful — yet millions of Americans overpay every year simply because they miss deductions they’re legally entitled to claim. Whether you file individually or run a small business, knowing which tax breaks apply to you can make a significant difference in your refund or bottom line.

As CPAs, we see the same deductions overlooked repeatedly. Below is a comprehensive guide to the most commonly missed tax deductions, how they work, and how to maximize them.

The SALT deduction (capped at $10,000) allows you to deduct:

• State income taxes
  
• Local income taxes
  
• Property taxes
• Sales taxes (in place of state income tax)

Many taxpayers forget they can deduct either state income tax or sales tax — whichever is higher. For those in states with no income tax, this is a valuable deduction.

If you use part of your home regularly and exclusively for business, you may qualify for this deduction — even if your business is a side gig.

Two methods exist:
• Simplified: $5 per square foot (up to 300 sq ft)
• Actual Expense: % of rent/mortgage interest, utilities, insurance, repairs, etc.

Most people skip this deduction out of fear of “red flags.” In reality, when applied correctly, it’s a legitimate and powerful tax break.

You can deduct up to $2,500 in student loan interest paid — even if a parent or someone else is making the payments on your behalf. As long as you are listed as the borrower, you may qualify.

If your out-of-pocket medical expenses exceed 7.5% of your AGI, you can deduct eligible costs such as:

• Doctor visits
• Dental work
• Prescriptions
• Medical travel mileage
• Long-term care premiums
• Certain medical equipment

Most taxpayers don’t track these properly and miss out.

You can deduct much more than cash donations. Qualifying deductions also include:

• Donated clothing, goods, furniture
• Mileage driven for volunteer work
• Supplies purchased for charity work
• Appreciated stock donations (often more valuable than cash)

Be sure to keep records or receipts — even simple ones from nonprofit drop-off centers.

Retirement deductions are one of the most powerful tax tools available.

You may be able to deduct contributions to:

• Traditional IRA
• SEP IRA (for self-employed)
• Solo 401(k)
• SIMPLE IRA

Many taxpayers fail to maximize deductible contributions — especially small business owners who qualify for much higher limits through SEP or Solo-K plans.

Teachers K-12 can deduct up to $300 for classroom supplies they personally paid for — even if they do not itemize. Married educators each qualify individually.

If you use your vehicle for work (not commuting), mileage can be deducted using:

• Standard mileage rate, or
  
• Actual expenses (fuel, repairs, depreciation, insurance)
  

Gig workers, real estate agents, and contractors often miss this deduction because they don’t log miles consistently.

HSA contributions are triple tax-advantaged:

1. Tax deductible
2. Tax-free growth
3. Tax-free withdrawals for medical expenses

Even if you don’t itemize, you can still take this deduction.

You may be able to deduct certain job-search related costs like résumé preparation, travel, and employment agency fees — if you meet eligibility rules. Many taxpayers overlook this completely.

With recent federal energy incentives, homeowners may qualify for credits for improvements like:

• Solar panels
• Heat pumps
• Energy-efficient windows
• Home energy audits

This credit is often left unclaimed due to lack of documentation — so keep receipts.

Missing deductions is common — but avoidable. The key is organization, documentation, and working with a CPA who understands the full range of allowed tax benefits for your situation.

If you want help identifying every deduction available to you or your business, Wilson & Associates CPA can help you file accurately and maximize savings.

At Wilson & Associates CPA, we combine deep expertise with personalized service to help individuals and businesses stay compliant, reduce risk, and make smarter financial decisions. Whether you have questions about taxes, audits, or long-term financial planning, our team is here to guide you every step of the way.

Contact Wilson & Associates CPA today to schedule your consultation.