Tax season can be a very challenging time of year when it comes to deductions and credits that can lower your tax bill. Even with careful tracking of expenses and research into tax breaks, it is easy to overlook certain deductions that could save you a significant amount of money. This article will highlight the top 7 tax deductions that are most commonly forgotten, to help you make sure you are not missing out on any potential savings.

1. State and local sales taxes: If you live in a state with no income tax, you may be able to deduct the sales taxes you paid instead. This can be particularly advantageous if you made a big purchase such as a car or boat during the year. You can also elect to combine general sales tax paid on your big purchase with a formulated version of sales tax paid that is based on your local sale tax rates and your income.
2. Charitable contributions: Donations to qualified charitable organizations are tax-deductible, but keeping good records of your contributions is essential. This includes not only cash donations but also non-cash contributions such as clothes, furniture, and other items.
3. Mortgage interest: While this is a commonly known deduction, it is one of the most important to remember now that there is a $10,000 cap on state and local taxes. Be sure to keep track of the interest paid on your mortgage, as well as any points paid at closing.
4. Education expenses: If you’re currently a student or if you took classes to improve your skills in your current job, you may be able to deduct certain education expenses. This includes tuition, fees, books, and supplies.
5. Medical expenses: If you have high medical expenses, you may be able to deduct a portion of them. This includes things like doctor’s visits, prescription drugs, and medical equipment. These expenses will need to be substantial in order to be used.
6. Business use of your home: If you use part of your home for business purposes, you may be able to deduct a portion of your home-related expenses. This includes things like utilities, insurance, and mortgage interest. Alternatively, you can elect to use the simplified method which will give you a deduction of $5/square foot of space used as a dedicated office.
7. Mileage: If you keep track of your mileage throughout the year, you are able to deduct mileage for business, medical/moving, and charitable purposes. The 2022 mileage rates are $.585/mile, $.18/mile, and $.14/mile respectively. In June 2022, the IRS announced that they would increase the mileage rates for the remainder of 2022. That information can be found on the IRS Website.

It’s essential to note that some deductions have specific criteria or limits, and it’s always advisable to consult a professional or check with the IRS to ensure that you are eligible for the deductions. By keeping these deductions in mind, you can ensure that you’re not leaving any money on the table come tax time. It’s also a good idea to keep all your records and receipts for these deductions, just in case you get audited.