Three commonly overlooked tax deductions that might be preventing you from maximizing your refund. And tips to help out your tax pro!
Tax season often feels overwhelming. Between gathering documents, meeting deadlines, and trying to understand complex IRS rules, it’s no wonder many people rush through their returns just to get it done. Unfortunately, in that rush, it’s easy to miss valuable deductions that could lower your taxable income—or even increase your refund.
At Compass Tax Center, we see it every year: clients walk in thinking their return will be straightforward, only to discover they’re eligible for deductions they never knew existed. Below are three of the most commonly overlooked deductions you might be missing, along with a few bonus tips to help you maximize your return.
1. State Sales Tax or Local Taxes Paid
Did you know you can choose to deduct either your state income taxes or your state and local sales taxes? For people living in states with no income tax (like Florida or Texas), this can be especially valuable.
Even if you live in a state with income tax, deducting sales tax could make more sense if you made large purchases during the year—such as a car, boat, or major home renovation. The IRS provides optional sales tax tables, but if you kept receipts, you may be able to deduct even more.
💡 Tip: Bring receipts for big-ticket purchases to your appointment. Our team will help you calculate which deduction works best for you.
2. Overlooked Energy Credits
Many taxpayers overlook valuable energy tax credits that could save them hundreds—or even thousands—each year. From the Energy Efficient Home Improvement Credit (covering upgrades like insulation, windows, and HVAC systems) to the Residential Clean Energy Credit (30% back on solar, geothermal, or battery storage), these incentives can significantly reduce your tax bill. Even EV purchases and home charging stations qualify for credits many people miss. At Compass Tax Center, we make sure you don’t leave these energy savings on the table.
💡 Tip: Keep a folder with receipts for any energy efficient related expenses. Even small amounts can add up and make a difference.
3. Charitable Contributions Beyond Cash
Most people know they can deduct cash donations to qualified charities—but many forget that non-cash contributions count too. Did you donate clothes, furniture, or other goods to a local charity like Goodwill or Salvation Army? You can deduct the fair market value of those items.
Additionally, if you drove your vehicle for charitable purposes—such as volunteering—you may be able to deduct mileage. It’s currently set at 14 cents per mile.
💡 Tip: Always get a receipt when you drop off donations. Compass can help you determine the fair market value so you don’t undervalue your generosity.
Bonus Deductions Worth Checking
While the three deductions above are some of the most commonly missed, here are a few extras worth keeping in mind:
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Educator Expenses: Teachers can deduct up to $300 for classroom supplies they purchase out of pocket.
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Medical Travel: If you drove for medical appointments, the mileage may be deductible.
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Student Loan Interest: Up to $2,500 may be deductible, depending on income limits.
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Energy-Efficient Home Improvements: Credits and deductions are available if you installed solar panels, energy-efficient windows, or similar upgrades.
Why So Many Deductions Get Missed
Tax rules are complex, and many taxpayers rely on generic software that doesn’t always dig deep enough into your unique financial situation. Deductions often get overlooked because:
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People don’t keep receipts or proper records.
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They assume certain expenses aren’t deductible when they actually are.
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They rush to file without taking time to review possible savings.
That’s why working with a professional tax center like Compass can make all the difference. We know what to look for, which questions to ask, and how to ensure you get every deduction you deserve.
Final Thoughts
Tax season doesn’t have to mean overpaying. By taking advantage of deductions—especially the ones many people overlook—you can reduce your taxable income and keep more money in your pocket.
At Compass Tax Center, we specialize in helping individuals and families uncover hidden opportunities for savings. Don’t file alone and risk missing out. Let us guide you through the process and ensure you’re not leaving money on the table.
👉 Book your appointment with Compass Tax Center today and file with confidence.