The end of the year is a time to wrap up your previous year and prepare for the next. And preparing for tax season is no different. Unfortunately, missed tax deductions can add up if you aren’t preparing your taxes efficiently. As a result, many Americans may be losing out on income they could be “getting back” from the government.

The best way to ensure you are getting all your deductions is to educate yourself first. Knowing what deductions you are eligible for is half the battle! Next, being prepared and having a trusted CPA to do your taxes year after year can help. Rather than just handing your CPA your paperwork, let them know that you wish to check thoroughly for any eligible deductions and your projected earnings and tax situation for next year so that you may start to prepare.

Most people know to deduct charitable donations, health insurance, and student loans. But there is so much more than that! Here are a few often missed tax deductions people overlook:

Making Energy Efficient Improvements

Most energy-efficient improvements come with a tax credit. If you have recently installed solar panels or bought an electric car, look into what deductions you may be missing.

Home Office Expenses

If you are a freelancer or self-employed, you may be missing deductions for your workspace. However, if you use your home to run your business exclusively, you can deduct things such as wifi, office supplies, and sometimes even a portion of your rent!

Continued Education

Even if you are not a full-time student or already have a degree, you can still get deductions for education expenses. In addition, the Lifetime Learning credit can help you with undergrad and graduate courses or continuing education certificates. 

Childcare

Tax credits changed significantly in 2021 for childcare. If you go outside the home to care for your child, recheck what you are eligible for. The amounts per child have been raised, and the income levels have changed as well.

Missed tax deductions can be hard on your wallet. But they wouldn’t be deductible if it didn’t benefit both you and the government! So talk to a financial planner or CPA to ensure you aren’t missing any important tax deductions today.