Top 10 Tax Deductions You Shouldn't Miss in 2024

Tax season can be overwhelming, but knowing which deductions you're eligible for can significantly reduce your tax burden. Here are the top 10 tax deductions that many taxpayers overlook:

1. Home Office Deduction

If you work from home, you may be eligible to deduct expenses related to your home office. This includes:

Simplified method: $5 per square foot (up to 300 sq ft)

Actual expense method: Percentage of home expenses based on office space

2. Medical and Dental Expenses

You can deduct medical expenses that exceed 7.5% of your adjusted gross income, including:

Doctor visits and treatments

Prescription medications

Medical equipment

Travel expenses for medical care

3. State and Local Tax (SALT) Deduction

Deduct up to $10,000 in state and local taxes, including:

State income taxes

Local income taxes

Property taxes

Sales taxes (if you don't deduct income taxes)

4. Charitable Contributions

Donations to qualified organizations are deductible:

Cash donations

Property donations

Volunteer mileage (14 cents per mile in 2024)

Out-of-pocket expenses for volunteer work

5. Student Loan Interest

Deduct up to $2,500 in student loan interest paid during the year, subject to income limits.

6. Educator Expenses

Teachers and educators can deduct up to $300 for classroom supplies and materials.

7. Business Use of Your Car

If you use your car for business, you can deduct:

Standard mileage rate: 67 cents per mile in 2024

Actual expenses: Gas, repairs, insurance, depreciation

8. Self-Employment Tax Deduction

Self-employed individuals can deduct half of their self-employment tax.

9. Health Savings Account (HSA) Contributions

Contributions to HSAs are tax-deductible and can be used for qualified medical expenses.

10. Retirement Plan Contributions

Contributions to traditional IRAs and 401(k)s can reduce your taxable income.

Important Reminders

Keep detailed records and receipts

Consult with a tax professional for complex situations

Consider itemizing vs. standard deduction

Stay updated on tax law changes

Need Help?

Our expert tax professionals at Elite Tax Consulting Services can help you identify all eligible deductions and maximize your tax savings. Contact us today for a consultation!