Tax Deductions You Shouldn't Miss in 2026

Deductions Most Filers Miss

Every year, millions of taxpayers overpay because they miss deductions and credits they’re entitled to. Here are the most commonly overlooked tax breaks for the 2025 tax year (filed in 2026).

Student Loan Interest Deduction

You can deduct up to $2,500 in student loan interest paid during the year, even if you take the standard deduction. This is an “above-the-line” deduction, meaning you don’t need to itemize to claim it. At the 22% tax bracket, this deduction saves you up to $550.

Eligibility: The deduction phases out for modified AGI between $85,000 and $100,000 (single) or $170,000 and $200,000 (married filing jointly). The loan must be for qualified education expenses.

Earned Income Tax Credit (EITC)

The EITC is one of the most valuable credits available, worth up to $8,046 for families with three or more qualifying children. Despite its value, the IRS estimates that about 20% of eligible taxpayers fail to claim it each year.

2025 Maximum EITC amounts:

• No children: $649
• One child: $4,328
• Two children: $7,152
• Three or more: $8,046

You must have earned income and meet AGI limits to qualify. MyFreeTaxReturn.com automatically calculates your EITC eligibility during the filing process.

Educator Expenses

Teachers and other eligible educators can deduct up to $300 ($600 for married educators filing jointly) for unreimbursed classroom expenses. This includes books, supplies, computer equipment, and supplementary materials. Like student loan interest, this is an above-the-line deduction.

State and Local Tax Deduction (SALT)

If you itemize deductions, you can deduct up to $40,000 in state and local taxes paid ($20,000 if married filing separately). The cap phases down for filers with AGI above $500,000. You choose between deducting state income tax or state sales tax — whichever is higher. Filers in states with no income tax (like Texas, Florida, and Washington) should always check the sales tax option.

Charitable Donations

Cash donations to qualified charities are deductible if you itemize. Keep receipts for all donations. For non-cash donations (clothing, household goods), keep detailed records including the item description, condition, and fair market value.

Medical Expenses

Medical expenses exceeding 7.5% of your AGI are deductible if you itemize. This includes insurance premiums (if not paid with pre-tax dollars), prescriptions, doctor visits, dental care, vision care, and medical travel expenses.

Home Office Deduction

If you’re self-employed and use a dedicated space in your home exclusively for business, you may qualify for the home office deduction. The simplified method allows a deduction of $5 per square foot, up to 300 square feet ($1,500 max). MyFreeTaxReturn.com includes Schedule C and the home office deduction for free.

Don’t Miss These Credits

• Child Tax Credit: $2,200 per qualifying child under 17
• Child and Dependent Care Credit: Up to $3,000 for one child, $6,000 for two or more
• American Opportunity Credit: Up to $2,500 for college students (first four years)
• Lifetime Learning Credit: Up to $2,000 for any post-secondary education
• Saver’s Credit: Up to $1,000 ($2,000 joint) for retirement contributions

File for Free and Claim Every Deduction

MyFreeTaxReturn.com’s guided filing process ensures you don’t miss eligible deductions and credits. The system asks targeted questions and automatically applies deductions based on your answers. Start your free return today and see what you qualify for.