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What are some of the most overlooked tax deductions?

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Quick Answer

The most overlooked tax deductions include local and state sales taxes, in-kind charitable contributions, and student-loan interest paid by parents, according to Intuit. Taxpayers also often neglect to deduct points paid for a mortgage refinance because the deduction requires amortization over the life of the loan.

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Full Answer

Taxpayers who deduct their local and state sales taxes use Internal Revenue Service tables to determine the standard deduction for each state, but some individuals overlook taking an additional deduction for big-ticket items, such as boats and vehicles, warns Intuit. While most taxpayers list their cash charitable contributions, taxpayers often neglect to deduct small in-kind contributions, such as items they donate to a food pantry. Parents can deduct student-loan interest if they pay the debt even when the loan is in their child's name.

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