Tax Deductions You're Missing in 2024

Should You Itemize or Take the Standard Deduction?

With higher standard deductions, fewer people itemize. However, you should consider itemizing if your total deductions exceed:

• • Single filers: $14,600
• • Married filing jointly: $29,200
• • Head of household: $21,900

Top Overlooked Deductions

1. State and Local Tax (SALT) Deduction

You can deduct up to $10,000 in state and local taxes, including:

• • State income taxes or state sales taxes (choose the higher amount)
• • Local income taxes
• • Property taxes on your home
• • Personal property taxes on vehicles

2. Home Office Deduction

If you work from home, you might qualify for this valuable deduction:

3. Medical and Dental Expenses

You can deduct medical expenses that exceed 7.5% of your AGI, including:

• • Insurance premiums (if not paid pre-tax)
• • Prescription medications
• • Dental and vision care
• • Medical equipment and supplies
• • Travel expenses for medical care
• • Long-term care expenses

4. Charitable Contributions

Don't forget these often-missed charitable deductions:

• • Cash donations (keep receipts for amounts over $250)
• • Non-cash donations (clothing, household items)
• • Mileage for volunteer work (14 cents per mile in 2024)
• • Out-of-pocket expenses for volunteer work

5. Business Expenses (If Self-Employed)

Self-employed individuals can deduct legitimate business expenses:

• • Office supplies and equipment
• • Professional development and training
• • Business meals (50% deductible)
• • Business travel expenses
• • Professional memberships and subscriptions
• • Business insurance premiums

Valuable Tax Credits (Even Better Than Deductions)

Tax credits reduce your tax bill dollar-for-dollar, making them more valuable than deductions:

1. Child Tax Credit

2. Earned Income Tax Credit (EITC)

This credit is designed for low-to-moderate income working families:

• • Maximum credit varies by number of children and income
• • Fully refundable credit
• • 2024 income limits: Up to $57,414 (married with 3+ children)

3. Child and Dependent Care Credit

Credit for childcare expenses that allow you to work or look for work. Up to $3,000 for one child or $6,000 for two or more children.

4. American Opportunity Tax Credit

Up to $2,500 per student for qualified education expenses during the first four years of college. Up to $1,000 is refundable.

Retirement Account Contributions

These contributions can significantly reduce your taxable income:

Education-Related Deductions

• • Student loan interest: Up to $2,500 deduction
• • Tuition and fees: Various education credits available
• • Educator expenses: Up to $300 for classroom supplies (teachers)

Record-Keeping Tips

When to Consult a Professional

Consider hiring a tax professional if you have:

• • Self-employment income
• • Rental property income
• • Significant investment gains/losses
• • Complex family situations
• • Multiple income sources

The Bottom Line

Tax planning isn't just about filing your return—it's about maximizing your deductions and credits throughout the year. Keep good records, understand what you can deduct, and don't be afraid to itemize if it saves you money. Every dollar you save on taxes is a dollar you can invest in your future.