The Tax Deductions and Credits Americans Most Often Overlook

Every filing season, Americans leave money on the table by overlooking deductions and credits they are entitled to claim. Awareness, more than complexity, is often the barrier.

The earned income tax credit is among the most valuable and most underclaimed, with a meaningful share of eligible households failing to take it. Because eligibility depends on income and family size, some people qualify one year and not the next, and simply do not check.

Education and dependents

Credits for higher education costs can offset tuition and fees, yet families sometimes miss them or claim the less advantageous option. The child and dependent care credit similarly goes unclaimed by parents who paid for care while working.

State and local tax choices matter too. Filers in states without an income tax can often deduct sales tax instead, a break that is easy to forget. Charitable contributions, including non-cash donations, are another frequent oversight.

When to get help

For straightforward returns, quality software surfaces most of these automatically. For anything more involved, a professional often pays for themselves by catching breaks a filer would miss. The lesson each spring is the same: it pays to check before you file.