As tax season approaches, it’s the perfect time to make sure you’re getting the most out of your return. Many people overlook valuable tax deductions and credits that could help lower their tax bill or increase their refund. We’ll break down some of the most commonly missed deductions and credits, explain how they work, and offer tips to help you maximize your tax savings. Whether you’re filing for the first time or a seasoned pro, taking a closer look at these opportunities could put more money back in your pocket this year.

Tax-Deductible Charitable Contributions

If you itemize deductions, don’t forget about the charitable contributions you made throughout the year. These can include cash, property, and even out-of-pocket expenses incurred for volunteer work. 

Just remember to keep receipts from charitable organizations and good records of your contributions; but keep in mind that not every donation is considered tax-deductible. To deduct a contribution on your tax return, the charity must be an approved tax-exempt organization (501(c)(3), Churches/Religious Organizations, Political Organizations, etc.). Click here to use the IRS’s search too to see which organizations qualify.

Student Loan Interest Deductions

No one enjoys paying student loans, but doing so might save you money when preparing your taxes. That’s because you can deduct up to $2,500 (or the actual amount, whichever is less) of the interest paid on qualified student loans in 2024. The interest paid can be on any qualified student loan that you took out for yourself, a spouse, or someone who was dependent at the time you took out the loans. 

Tax Credit for Other Dependents

Some taxpayers can receive tax credits for dependents, regardless of age. For example, while the 2024 child tax credit only applies to qualifying dependents under age 17, older children and even adults could be considered qualified dependents for the purpose of claiming the tax credit for other dependents. 

The credit is worth up to $500 for each qualifying dependent. However, the same dependent cannot qualify for both the child tax credit and the credit for other dependents. The IRS has a tool for taxpayers to help determine whether or not their dependent qualifies for the tax credit for other dependents.

As you finalize your tax return, it’s always a good idea to consult with a trusted tax professional to make sure your return is accurate and to help maximize your refund. This blog has highlighted key opportunities like tax-deductible charitable contributions, student loan interest deductions, and tax credits for other dependents. However, navigating eligibility requirements can be tricky. To make it easier, we’ve included links to the IRS website for charitable contributions and other dependent tax credits so you can check if you qualify. With the right guidance, you can confidently claim every deduction and credit you deserve!