If you are a senior on a fixed income, a college student with more school loans than you care to think about, or a parent who is paying quite a lot of money out of pocket for child care each month; tax deductions can be your best friends come tax time. Yet many Americans overlook several important tax write-offs because they’re unaware they exist.
Here are some of the most common tax breaks that can benefit you and your family:

1. Medical expenses
While healthcare continues to get more expensive each year, many people fail to take advantage of tax breaks associated with medical expenses. Once you’ve completed your online search for “tax consultants near me” and are working with income tax professional services you can trust, you’ll discover you can deduct travel and transportation costs associated with medical care, such as car expenses, bus fare, parking fees, and even lodging up to $50 USD per person, per night.

2. Student loan Interest
As you know, student loan interest can accumulate quickly. However, tax write-offs can help you redeem some of your money. The IRS now allows any student who is not claimed as a dependent to deduct as much as $2,500 USD of their loan interest on their taxes. This tax deduction applies if you made your own student loan payments, and also even if your parents or a loved one makes the payments.

3. Child and dependent care tax credit
Since a tax credit reduces your overall tax bill dollar for dollar, you don’t want to miss out on one associated with child and dependent care. Thanks to the American Rescue Plan legislation, parents and legal guardians can reap huge benefits from this tax credit. For example, for the 2021 tax year, qualifying expenses increased from $3,000 to $8,000 USD if you have one qualifying child or dependant, and from $6,000 to $16,000 USD for two or more children or dependants. Also, the adjusted gross income level from which your percentage is reduced has also increased substantially, from $15,000 to $125,000 USD.

4. Charitable and political donations
If you contributed to a political campaign, whether it was through the mail, social media, or otherwise, you are entitled to deduct that on your tax return. As for charitable donations, you can deduct a portion of the value of items you donated, and also any expenses associated with traveling to and from volunteer activities, such as mileage or public transportation costs.

5. Disability tax credit
If you are one of millions of Americans who received disability payments this past year, you may qualify for a disability tax credit by claiming the Earned Income Tax Credit. This is because disability payments may qualify as earned income. Believe it or not, as many as 25% of taxpayers who qualify for this tax credit overlook this write-off come tax time. So make sure you work with your tax professional to use this credit to your full advantage.

6. Moving expenses
Finally, if you are an active-duty member of the nation’s military and have relocated as ordered by the military, you may be eligible to deduct your moving expenses. These tax deductions may include lodging and travel expenses, moving company expenses, and even shipping an automobile or pet to your new destination.

Every year, millions of dollars in tax deductions and credits go unclaimed in the U.S. By taking advantage of these many common yet overlooked tax deductions when you file your taxes, you can minimize your tax bill and enjoy a larger tax refund.