Every taxpayer’s goal is to pay exactly what they owe, and not a cent more. However, the U.S. tax code is thousands of pages long, and valuable deductions are often hidden in the fine print. In 2026, several credits have been expanded or adjusted for inflation, but millions of filers will still be missed outright. Software is useful, but only answers the questions you need to ask.
If you rush through your file, you are probably leaving “free money” with the Treasury. These deductions are not “loopholes” for the wealthy; they are legitimate breaks intended for daily expenses like healthcare, energy, and even volunteer work. Before you click “Submit” on your 2025 return this spring, take a look at this checklist of the ten most overlooked tax breaks.
1. The state tax deduction
You have a choice: subtract state income taxes OR state sale taxes. Most people automatically opt for an income tax, but if you live in a state without an income tax (such as Florida, Texas or Washington) or have made a major purchase in 2025, the sales tax deduction wins. If you bought a car, boat or RV last year, the sales tax alone could be thousands of dollars. The IRS Sales Tax Calculator you can add these expensive items to the standard table amount for your state.
2. Adjustment of reinvested dividends
This is not a deduction, but a deduction so that you do not have to pay double tax. If your mutual funds automatically reinvest dividends, that money buys more shares at the current price. When you eventually sell those shares, you’ll need to add the reinvested amount to your “cost basis.” If you forget this step, you will be taxed twice on the same money: once when you receive the dividend, and again when you sell the stock.
3. Interest on student loans (even if mom paid it)
You can deduct up to $2,500 in student loan interest paid, and you don’t even have to itemize to claim it. Crucially, if a parent repays a student loan for a child who is no longer a dependent, the IRS treats this as if the money was given to the child, who then paid the debt. This means the child can claim the deduction even though the check came from Mom’s bank account.
4. Jury duty paid to employer
If your employer has continued to pay your full salary while you were on jury duty, they often require you to turn over your jury checks to the company. However, the IRS still reports that jury money as taxable income on your W-2. That’s allowed deduct the amount you handed over to your employer on Schedule 1, effectively neutralizing the tax so you aren’t taxed on money you haven’t kept.
5. The “Other dependent person” credit.
Many families care for elderly parents or adult relatives who do not qualify for the child tax credit. The credit for other dependents is worth up to $500 per person. It applies to parents, grandparents or other eligible relatives you support financially, helping offset the rising costs of caring for non-children.
6. Last-minute HSA contributions
Unlike most tax incentives that end on December 31, you have until the tax filing deadline (April 15, 2026) to contribute to a Health Savings Account (HSA) for the 2025 tax year. The limits for 2025 were $4,300 for individuals and $8,550 for families. If you have not yet used this, you can make a deposit now and immediately deduct it from your income for 2025.
7. Military reserve travel expenses
If you are a member of the National Guard or Reserves and travel more than 100 miles from home for service, you can deduct your unreimbursed travel expenses. This includes mileage, accommodation and meals. This is an above-the-line deduction, meaning you don’t have to specify to take it, unlike most employee operating costs, which were eliminated.
8. Credit for energy-efficient home improvements
The Inflation Reduction Act significantly expanded inflation Section 25C creditallowing up to $3,200 annually for energy upgrades. This includes up to $2,000 specifically for heat pumps and $1,200 for windows and insulation. Many taxpayers miss this because they think it’s a one-time, lifetime credit, but now it’s being reinstated every year.
9. Charitable Expenses
Although you can’t deduct the value of your time, you can deduct the out-of-pocket costs of volunteering. This includes the cost of uniforms, supplies and, crucially, the miles driven for charity purposes (at 14 cents per kilometer). If you’ve driven thousands of miles for Meals on Wheels or church events, these miles are a real deduction.
10. Refinancing points (amortized)
If you have refinanced your mortgage in 2025, you usually cannot deduct the ‘points’ paid in one go. However, you can deduct them gradually over the term of the loan. Additionally, if you refinance again or have sold the home, you can deduct all remaining undeducted points from the previous refinancing in one go this year.
Stop the leak before filing
These deductions are the difference between a refund and an invoice. The IRS relies on your fatigue to keep this money. Go through your administration one last time this weekend. If you spent money to make money, keep your family healthy, or improve your home, there’s probably a line on the 1040 form waiting for that number. Claim what is rightfully yours.
Did you find a deduction on this list that you almost missed? Leave a comment below and share your savings win!
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