Top 10 Commonly Overlooked Tax Deductions and Credits for the 2025 Tax Year
Many people assume they’re already getting every deduction and credit they qualify for. In reality, a lot of tax savings are missed simply because the rules are confusing or because something doesn’t seem “big enough” to matter.
At East Bay Tax Solutions, we look beyond the basics to help clients understand what truly applies to their situation. Here are ten deductions and credits that are often overlooked but still available under current tax law for 2025 returns.
1. Home Office Deduction (Self-Employed)
If you run a business and use part of your home regularly and exclusively for work, you may qualify. This can include a portion of:
Mortgage interest or rent
Property taxes
Utilities
Internet
Home insurance
This deduction is generally not available to W-2 employees.
2. Business Mileage
If you’re self-employed, miles driven for business purposes can add up quickly. Commonly forgotten trips include:
Bank visits
Post office or shipping runs
Office supply purchases
Picking up materials
Keeping a mileage log is key.
3. Self-Employed Health Insurance
Health insurance premiums for you, your spouse, and dependents may be deductible if you’re self-employed. This includes medical, dental, and certain long-term care coverage. This adjustment does not require itemizing.
4. Business Use of Phone and Internet
If you use your personal phone or internet for business, a reasonable portion of those expenses may be deductible. Good recordkeeping makes this easier to support.
5. Retirement Contributions for the Self-Employed
Contributions to SEP-IRAs, SIMPLE IRAs, and Solo 401(k)s may reduce taxable income. In many cases, you can still make contributions up to the tax filing deadline and apply them to the prior year.
6. Child and Dependent Care Credit
If you pay for care so you can work or look for work, you may qualify for a credit for:
Daycare
After-school programs
Summer day camps
Care for a disabled dependent
Because this is a credit, it directly reduces taxes owed.
7. Earned Income Credit (EIC)
The Earned Income Credit is a refundable credit for certain low-to-moderate income workers, especially those with children. Many people assume they don’t qualify when they actually do.
8. Mortgage Points
Points paid when obtaining a mortgage to purchase a primary home may be deductible in the year paid, if IRS requirements are met. Points paid for a refinance are generally deducted over time.
9. State Taxes Paid for a Prior Year
If you pay state income taxes in 2025 that relate to a prior year’s balance due, those payments may count toward your state and local tax deduction, subject to the SALT limit.
10. Moving Expenses for Active-Duty Military
Moving expenses are no longer deductible for most taxpayers. However, active-duty members of the Armed Forces moving under military orders may still qualify.
A Final Thought
Most missed tax savings don’t happen because people are careless — they happen because tax rules are detailed and constantly changing. What applies to one person may not apply to another.
That’s why reviewing your income, life changes, and business activity each year makes a difference. Understanding your full picture helps ensure you’re not leaving money on the table while still staying compliant.
If you’re unsure which deductions or credits apply to you, getting professional guidance can provide clarity and peace of mind.
