Common Tax Deductions and Credits People Miss

6 min readUpdated regularly

A handful of overlooked items account for most of the money left on the table each filing season.

Our verdict

Check these before filing, even if you use software

Tax software surfaces most deductions automatically, but only if you enter the underlying information — these are the categories people forget to enter in the first place.

Above-the-line deductions

Student loan interest, HSA contributions, and traditional IRA contributions can reduce taxable income even if you take the standard deduction — they're separate from itemizing. These are easy to miss because they don't require itemizing to claim.

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Credits vs. deductions

A credit reduces your tax bill dollar-for-dollar, while a deduction only reduces the income that gets taxed — credits are generally more valuable. Education credits and dependent care credits are commonly under-claimed simply because people don't realize they qualify.

State-specific items

Many states offer their own deductions and credits separate from federal ones — for things like 529 plan contributions or state-specific energy efficiency upgrades. These are easy to miss because federal-focused guides don't always mention them.

This guide is for general information and doesn't constitute financial advice. Product terms change — confirm current rates and fees directly with the provider before applying. See our advertiser disclosure.