Discover 22 common yet often-overlooked tax deductions that can significantly reduce your tax liability. From state sales tax to education credits, this guide highlights key saving opportunities many taxpayers miss, helping you maximize your refunds and ensure you're claiming all eligible write-offs.

Many taxpayers miss out on deductions that could significantly lower their tax bills. The IRS notes that individuals often pay more taxes than necessary, making it crucial to claim all eligible deductions. Here are 22 often-overlooked tax write-offs that could help you save.

State and Local Sales Tax: Applicable to everyone, especially residents of states without income tax. You can choose to deduct either sales taxes or income taxes, with IRS guidelines available for calculation.

Charitable Donations: Expenses from volunteering or donating, such as purchasing stamps for fundraisers or buying ingredients for food drives, are deductible.

Job Search Costs: Expenses like travel, lodging, employment agency fees, and resume printing can be deducted if you itemize your return.

Travel for Military Reservists: Expenses for military or National Guard personnel traveling over 100 miles overnight for drills or meetings are deductible.

Childcare Tax Credit: You might be eligible for a credit covering 20-35% of childcare expenses incurred during work hours. Employer reimbursement accounts may also be beneficial.

Prior Year State Taxes: State taxes owed from the previous year and withholding from your paycheck can be included on your federal tax return.

Salaries During Jury Duty: If you receive a paycheck while serving on jury duty, this income can be reported and deducted.

Educational Credits: Post-graduation, you can still benefit from the Lifetime Learning Credit for higher education costs.

Bonus Depreciation: Business owners can fully depreciate qualifying assets in the year they are acquired.

Retirement Penalty Relief: Seniors aged 62+ with taxes owed over $1,000 can request a waiver by submitting form 2210.

Legal Fees for Alimony: Attorney fees related to establishing alimony or tax advice can be deducted if they exceed 2% of your adjusted gross income.

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Additional Lesser-Known Deductions: Remember to include reinvested dividends for stock cost basis, deduct student loan interest or Medicare premiums as self-employed, and include estate taxes on IRAs. Mortgage points and credits like the American Opportunity Tax Credit (up to $2,500 annually) are also often missed. Other deductible expenses include baggage fees, social security taxes, bond premiums, and certain hospital costs.

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