Tax season is an opportunity to reduce your tax liability by claiming all eligible deductions. However, many individuals and businesses overlook deductions that could save them significant amounts. At Two Palms Accounting and Tax Solutions, we’ve compiled a list of commonly missed deductions to help you maximize your tax savings.

1. Home Office Deduction

If you’re self-employed or work from home, you may qualify for the home office deduction. This allows you to deduct a portion of your home expenses (such as rent, utilities, and internet) based on the percentage of your home used exclusively for business. Ensure the space is used regularly and exclusively for work to meet IRS requirements.

Pro Tip: Use the simplified method (up to $1,500 based on square footage) to avoid complex calculations, or consult with us for the actual expense method to potentially save more.

2. Charitable Contributions

Donations to qualified charities are deductible, but many taxpayers forget to include non-cash contributions, such as clothing or household items. Keep detailed records, including receipts and appraisals for items valued over $500. For 2023, you may also deduct up to $300 ($600 for joint filers) in cash donations without itemizing, so don’t miss this opportunity.

3. Medical Expenses

Medical expenses exceeding 7.5% of your adjusted gross income (AGI) are deductible if you itemize. This includes costs like doctor visits, prescriptions, and even travel expenses for medical care. Many taxpayers overlook expenses like hearing aids, acupuncture, or long-term care premiums, so review all your healthcare costs carefully.

4. State and Local Taxes (SALT)

You can deduct state and local income taxes or sales taxes, plus property taxes, up to a combined limit of $10,000 ($5,000 for married filing separately). If you live in a high-tax state or made significant purchases (e.g., a car), opting for the sales tax deduction might be more beneficial. Keep receipts or use the IRS sales tax calculator.

Prescription: Don’t overlook smaller deductions like job search expenses, professional dues, or unreimbursed employee expenses if you’re self-employed. These can add up and reduce your taxable income significantly. Contact Two Palms Accounting and Tax Solutions to review your financial situation and uncover every deduction you’re entitled to.