Maximize your refund by uncovering top tax deductions you might be missing in 2025. Learn how to lower your taxable income smartly.

Don’t Let Deductions Slip Away

When it comes to taxes, every dollar saved counts. Unfortunately, many people leave money on the table simply because they’re unaware of the deductions available to them. In 2025, tax rules may be updated, but the opportunities to lower your tax bill remain plentiful.

Let’s walk through the most overlooked tax deductions in 2025, so you can keep more of your hard-earned money.

1. Student Loan Interest Deduction

If you’re paying off student loans, you may qualify to deduct up to $2,500 of interest—even if you don’t itemize.

• Requirements: Modified Adjusted Gross Income (MAGI) under $90,000 (single) or $180,000 (married filing jointly).

2. Medical and Dental Expenses

If your out-of-pocket medical expenses exceed 7.5% of your AGI, you can deduct them by itemizing.
This includes:

• Doctor visits

• Prescription medications

• Mental health services

• Some dental and vision care

💡 Keep all receipts—it’s easier than guessing come tax time.

3. Educator Expenses

Teachers can deduct up to $300 (or $600 if married and both are educators) for classroom supplies they purchase with their own money.

4. Home Office Deduction (Self-Employed Only)

If you’re self-employed or freelance and use part of your home regularly and exclusively for business, you can deduct:

• A portion of rent or mortgage interest

• Utilities

• Internet service

Note: This doesn’t apply to W-2 employees working remotely.

5. Charitable Contributions

Donated to a 501(c)(3) charity? You can deduct cash donations or even the fair value of donated goods like clothes and furniture.
Remember to get a receipt for any donation over $250.

6. State and Local Taxes (SALT)

You can deduct up to $10,000 in combined state/local income, property, and sales taxes.
This is especially helpful if you live in a high-tax state.

7. IRA Contributions

Contributing to a traditional IRA can lower your taxable income. For 2025, you can contribute up to:

• $6,500 (under 50)

• $7,500 (50 or older)

8. Mileage and Vehicle Use (Self-Employed)

Business owners can deduct vehicle expenses using the standard mileage rate (around $0.655/mile) or actual expenses.
Keep a mileage log—it’s required for documentation.

Conclusion: Your Tax Refund Is in the Details

Deductions can significantly impact how much you owe or get refunded. Take time to review these often-missed deductions when filing in 2025. A few minutes could save you hundreds—or even thousands—of dollars.