With the standard deduction at an all-time high, many taxpayers assume there’s nothing else they can claim. That assumption can cost you real savings. Even if you take the standard deduction, there are valuable “above-the-line” deductions and credits that reduce your taxable income or tax bill. These opportunities are often missed—and they add up.
At Lightening the Load (LTL), we believe tax season isn’t just about filing—it’s about making sure you don’t leave money behind. Here’s what you need to know.
Why These Deductions Matter
Above-the-line deductions reduce your taxable income before calculating your adjusted gross income (AGI). Credits, on the other hand, directly lower your tax bill. The best part? Many of these apply whether you itemize or take the standard deduction. That means you could still save hundreds—or even thousands—just by knowing where to look.
5 Commonly Missed Opportunities
- Student Loan Interest Deduction
If you paid interest on qualified student loans, you may deduct up to \$2,500—even if youdon’t itemize. Income limits apply, so check eligibility before claiming. - Educator Expenses
Teachers and eligible educators can deduct up to \$300 for classroom supplies.It’s a small amount, but every dollar counts when you’re investing in your students. - Retirement Contributions (Traditional IRA)
Contributing to a traditional IRA can reduce your taxable income. Even ifyou’re not itemizing, this deduction is available—subject to income and plan participation rules. - Health Savings Account (HSA) Contributions
If you have a high-deductible health plan, HSA contributions are deductible and grow tax-free.It’s a triple benefit: deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses. - Earned Income Tax Credit (EITC)
This credit is often overlooked by those with fluctuating income or who think they earn too much. Eligibility changes yearly, soit’s worth checking—even a small credit can make a big difference.
Bonus Tip: Before you file, review big-ticket itemized deductions like mortgage interest or charitable contributions. If they exceed the standard deduction, itemizing could be worth it.
How to Make Sure You Don’t Miss Out
Tax rules change, and so do your circumstances. Review eligibility every year, keep documentation handy, and don’t assume last year’s choices apply this year. Professional guidance can help you uncover opportunities you didn’t know existed.
Let us lighten your load.
