Every year, countless taxpayers leave money on the table during tax season simply because they aren’t aware of all the deductions they qualify for. While many people know about the standard deductions, like student or mortgage loan interest, there are plenty of lesser-known deductions that can help you keep more of your hard-earned money. The Internal Revenue Service (IRS) tax code is full of surprises, so there’s a chance that you qualify for more savings than you realize. 

But with tens of thousands of pages of IRS tax regulations, it can be easy for even the most financially savvy taxpayers to miss out on potential savings. Some deductions are so uncommon that even the tax professionals you work with may not bring them up unless asked — and these “hidden” deductions aren’t exclusive to the wealthy or business owners, either. They’re available to taxpayers across various income brackets and situations. So, what are these surprising deductions and who qualifies for them? Below, we’ll detail eight to know now.

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8 tax deductions you didn’t know you qualified for

Here are some of the most overlooked deductions that you might be able to take advantage of this year:

Out-of-pocket charitable contributions

Most people know they can deduct donations to qualified charities, but did you know that even small, out-of-pocket expenses related to charitable work can be deducted? If you buy supplies for a nonprofit, cover travel expenses for volunteering or even drive to and from charitable events, those costs could be deducted. So, keep track of your receipts and mileage to capitalize on this benefit.

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Private mortgage insurance

Homebuyers who put down less than 20% on their homes are typically required to pay for private mortgage insurance. What many don’t realize, though, is that these premiums are potentially deductible for taxpayers with adjusted gross incomes below $100,000 (with a phase-out for those with salaries up to $109,000). This deduction has been extended several times and can save qualifying homeowners hundreds of dollars annually.

State sales tax deduction

If you live in a state with no income tax, you might be able to deduct your state sales tax instead. The IRS allows you to deduct either state income tax or state sales tax — whichever is greater. If you made a large purchase, such as a car or expensive appliances, this deduction could make a big difference in your tax bill.

Health insurance premiums for the self-employed

If you’re self-employed and pay for your own health insurance, you may be able to deduct your premiums — even if you don’t itemize. This applies to medical, dental and long-term care insurance for yourself, your spouse and your dependents. It’s an above-the-line deduction, meaning you can take advantage of it without needing to meet a high medical expense threshold.

Medical travel expenses

While many taxpayers know they can deduct certain medical expenses if they exceed 7.5% of their adjusted gross income, few realize this includes travel costs to receive medical care. Specifically, the IRS allows deductions for:

• Mileage driven to and from medical appointments 
• Parking fees and tolls
• Public transportation costs
• Lodging expenses (up to a certain amount per night per person) when traveling for medical treatment
• Meals (if they’re part of inpatient care)

If you’ve made multiple trips to specialists or received treatment at a facility far from home, these expenses can add up to a substantial deduction.

Home office deduction

Many people assume they don’t qualify for the home office deduction because they don’t work for themselves. However, if you use part of your home exclusively for work purposes and your employer doesn’t reimburse you, you might be able to deduct a portion of your rent, utilities and even internet expenses. This deduction applies to both self-employed individuals and employees who meet the IRS criteria.

Jury duty pay turned over to your employer

If you served on a jury and your employer continued to pay your salary while you were away but required you to hand over your jury duty pay, you can deduct that amount from your taxable income. It’s a small but often overlooked way to lower your tax bill.

Student loan interest paid by someone else

If someone else — like a parent — pays your student loan interest, the IRS may allow you to claim the deduction as if you paid it yourself. Provided that no one else is claiming you as a dependent, you can typically deduct up to $2,500 of student loan interest, even if the money didn’t come out of your pocket.

The bottom line

Filing your taxes can be overwhelming, but knowing the right deductions can make a significant difference in how much you owe — and how much you get back. Many people miss out on these lesser-known deductions simply because they don’t know they exist. So, taking a little extra time to research and, when necessary, consulting with a tax professional can pay off in the long run.