Commonly Missed Tax Deductions for 2026
Overview
Several legitimate above-the-line adjustments, itemized deductions, and credits are often overlooked by taxpayers each year. Eligibility rules apply to every item listed here, and figures shown reflect Tax Year 2025 guidance that may change. This is an informational summary only — confirm current limits at irs.gov or with a qualified tax professional before filing.
What deductions and credits do people commonly miss?
Each filing season, many taxpayers either claim the standard deduction without knowing they can still take certain above-the-line adjustments, or they itemize on Schedule A without claiming every eligible expense. A handful of credits — particularly those aimed at retirement savers, caregivers, and students — also go unclaimed each year because eligibility thresholds or unfamiliar names cause taxpayers to overlook them. The items below represent commonly overlooked deductions and credits that are recognized by the IRS. Whether any of them apply to your situation depends on your income, filing status, and other factors. A qualified tax professional can help you determine which items you may be eligible for.
Which adjustments can I claim without itemizing?
Above-the-line adjustments reduce your adjusted gross income (AGI) regardless of whether you take the standard deduction or itemize on Schedule A. These are claimed directly on Form 1040 or Schedule 1. Taxpayers who take the standard deduction can still benefit from the adjustments listed below, which is why they are especially worth knowing about.
| Item | What it is | Note |
|---|---|---|
| Student loan interest | Deduction of interest paid on qualifying student loans | Up to $2,500 for TY2025; phases out at higher MAGI levels — verify current thresholds at irs.gov |
| Educator expenses | Out-of-pocket classroom expenses for eligible K-12 teachers | Up to $300 for TY2025 for eligible educators; both spouses may each claim up to $300 on a joint return |
| Health Savings Account (HSA) contributions | Contributions made directly to an HSA outside of payroll | Only direct (non-payroll) contributions may be deducted here; annual contribution limits apply — see irs.gov |
| Self-employed health insurance | Premiums paid for health, dental, and long-term care insurance by self-employed individuals | Cannot exceed net self-employment income; not available if eligible for employer-subsidized coverage |
| Deductible IRA contributions | Contributions to a traditional IRA that may be deducted depending on income and workplace plan coverage | Deductibility phases out at higher incomes if you or a spouse have a workplace retirement plan; see irs.gov for current thresholds |
| One-half of self-employment tax | Half of the self-employment tax calculated on Schedule SE | Available to self-employed taxpayers; the deductible amount appears directly on Schedule 1 |
If you are self-employed, a freelancer, or a gig worker, several of the adjustments above may apply to you. For guidance on eligibility, see the standard deduction vs. itemizing guide or speak with a professional listed in our directory of tax professionals.
Which credits do people miss?
Tax credits reduce the amount of tax owed directly — dollar for dollar — rather than reducing the income on which tax is calculated. Several widely available credits go unclaimed each year, either because taxpayers are unaware of them or because they assume they do not qualify.
Retirement Savings Contributions Credit (Saver's Credit)
Eligible lower- and moderate-income taxpayers who contribute to a qualifying retirement account — such as a 401(k), IRA, or SIMPLE IRA — may be eligible for the Saver's Credit. The credit is worth up to 50 percent of contributions (subject to a cap), depending on income and filing status. Income thresholds and credit rates are adjusted annually. This credit is in addition to any deduction you may claim for IRA contributions. Details are available at the IRS Saver's Credit page.
Child and Dependent Care Credit
Taxpayers who pay for the care of a qualifying child under age 13, or a dependent or spouse who cannot care for themselves, so that the taxpayer (and spouse, if filing jointly) can work or look for work, may be eligible for this credit. Eligible expenses include daycare, after-school programs, and certain day camps. The percentage of expenses that can be claimed as a credit phases down at higher incomes. See the child tax credit guide for related information.
Education Credits
Two credits are available for qualifying higher-education expenses: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). The AOTC is available for the first four years of post-secondary education and is partially refundable. The LLC applies to a broader range of education situations and courses, including graduate study and professional development. Both are subject to income phaseouts. Eligibility rules, income limits, and qualifying expenses differ between the two — a tax professional can help determine which, if either, you may be eligible for.
Earned Income Tax Credit (EITC)
The Earned Income Tax Credit is a refundable credit available to certain low- and moderate-income workers and families. It is one of the largest credits available to eligible taxpayers, yet it goes unclaimed by millions of eligible filers each year. Eligibility depends on income, filing status, and number of qualifying children. Taxpayers without children may also be eligible. For a full overview, see the EITC explained guide.
What do itemizers often miss?
Taxpayers who itemize deductions on Schedule A sometimes overlook specific eligible expenses or less commonly known rules within categories they are already claiming. The items below appear on Schedule A and are sometimes missed even by taxpayers who itemize.
State and local sales tax in place of income tax
Taxpayers who itemize may deduct either state and local income taxes (SALT) or state and local sales taxes — but not both. The total SALT deduction (whether income or sales tax, plus property taxes) is currently capped at $10,000 ($5,000 for married filing separately) per the IRS. The sales-tax option can be especially relevant for residents of states with no state income tax, or for taxpayers who made large purchases during the year. The IRS provides an optional sales tax table, or taxpayers can use actual receipts. Confirm current limits and table availability at irs.gov Schedule A.
Charitable mileage and non-cash donations
Taxpayers who volunteer for qualifying charitable organizations may be eligible to deduct unreimbursed mileage driven in service of those activities. For TY2025, the IRS charitable mileage rate is 14 cents per mile — verify at irs.gov. Non-cash donations, such as clothing, household goods, and vehicles donated to qualifying organizations, may also be deductible. Non-cash contributions above certain dollar thresholds require additional documentation and, in some cases, a qualified appraisal. Substantiation requirements apply to all charitable contributions, so recordkeeping matters.
Medical and dental expenses exceeding the AGI floor
Unreimbursed medical and dental expenses that exceed 7.5 percent of your AGI may be deductible on Schedule A. Qualifying expenses can include premiums for health insurance not paid on a pre-tax basis, long-term care premiums (subject to age-based limits), out-of-pocket costs for prescriptions, dental and vision care, and certain medically necessary home modifications. Because the 7.5 percent floor is high relative to AGI for many filers, this deduction is often overlooked by people who assume they will not clear the threshold. In years with significant unreimbursed medical costs, it may be worth calculating.
For a more detailed comparison of itemizing versus the standard deduction, see the standard deduction vs. itemizing guide.
How do I know which of these apply to me?
Whether any of the items above apply to your specific tax situation depends on your income, filing status, employment type, family circumstances, and state of residence. Eligibility rules for many of these items involve phaseouts, thresholds, and documentation requirements that vary by year and individual circumstance.
State income tax rules are separate from federal rules covered here. State-specific deductions, credits, and conformity with federal law vary significantly. A qualified tax professional familiar with your state can identify additional items that may apply at the state level.
The IRS provides detailed guidance on individual credits and deductions at irs.gov/credits-deductions-for-individuals. For personalized guidance on your return, consider working with a credentialed tax professional. You can find a tax professional in TaxProsRated's directory of verified practitioners.
Frequently asked questions
Can I deduct student loan interest without itemizing?
Yes. Student loan interest is an above-the-line adjustment, meaning it is available to eligible taxpayers whether or not they itemize deductions on Schedule A. For TY2025, the deduction is available for up to $2,500 in qualifying interest and phases out at higher modified adjusted gross income levels. Confirm current phaseout thresholds at irs.gov or with a qualified tax professional.
Is there a credit available for contributing to a retirement account?
Yes. The Retirement Savings Contributions Credit — commonly called the Saver's Credit — may be available to eligible lower- and moderate-income taxpayers who contribute to a qualifying retirement plan or IRA. The credit is separate from any deduction for IRA contributions. Eligibility depends on income, filing status, and contribution amount. See the IRS Saver's Credit page for current income limits and credit rates.
Do I need receipts or records to claim these deductions?
Recordkeeping requirements vary by item, but documentation matters for most deductions and credits listed here. Charitable contributions above certain dollar amounts require written acknowledgment from the organization. Non-cash donations above specified thresholds require additional forms. Medical expenses require records showing amounts paid. Maintaining organized records throughout the year makes substantiation easier at filing time. A qualified tax professional can advise on what records to keep.
Can I claim the sales-tax deduction if I also pay state income tax?
Taxpayers who itemize must choose between deducting state and local income taxes or state and local sales taxes — not both. The total SALT deduction (whichever type you choose, combined with property taxes) is capped at $10,000 per current law. Taxpayers in states with no income tax typically benefit from the sales-tax option, but the calculation depends on individual circumstances. Confirm current rules at irs.gov or with a qualified professional.
What qualifies as a medical expense I can deduct?
Qualifying unreimbursed medical and dental expenses may include health insurance premiums not paid on a pre-tax basis, prescription drug costs, dental and vision care, certain long-term care premiums, and some medically necessary procedures and equipment. Only the portion of total qualifying expenses that exceeds 7.5 percent of your AGI is deductible. The IRS publishes guidance on qualifying expenses at irs.gov/taxtopics/tc501.