Common Tax Deductions and Credits You Might Be Missing
Taxes don’t have to feel like a one-way street. The right deductions and credits can help you keep more of what you earn, yet so many people miss out simply because they don’t know what they qualify for.
At The Purple Group, we believe tax planning should be proactive, not reactive and that means making sure you’re maximizing every opportunity. Let’s walk through some of the most overlooked deductions and credits so you can be confident you’re not leaving money on the table.
1 - Tax Deductions That Could Lower Your Tax Bill
Deductions reduce your taxable income, which means you owe taxes on a smaller amount and that’s a win in our book. Here are some key deductions you may be missing:
Mortgage Interest Deduction – If you own a home, you may be able to deduct interest paid on a mortgage up to $750,000 for new loans.
Charitable Contributions – Whether you’re donating cash, stocks, or even household items, qualified donations to 501(c)(3) organizations may be deductible. Just be sure to keep proper documentation!
Medical & Dental Expenses – If your medical expenses exceed 7.5% of your adjusted gross income, you may be able to deduct the amount over that threshold.
State & Local Taxes (SALT) – You can deduct up to $10,000 in combined property, state income, and sales taxes.
Self-Employed & Business Expenses – If you own a business or work for yourself, expenses like home office costs, business mileage, software, and professional development can work in your favor.
The Purple Group Pro Tip: Many deductions require proof, so keeping organized records throughout the year is key. (More on that below!).
2 - Tax Credits That Put Money Back in Your Pocket
Unlike deductions, tax credits reduce your tax bill dollar for dollar and in some cases, they’re refundable, meaning you could receive a credit even if you don’t owe taxes.
Child Tax Credit – If you have kids under 17, you may qualify for up to $2,000 per child, with a portion refundable depending on income.
Education Credits – Higher education costs? The American Opportunity Credit (up to $2,500) and the Lifetime Learning Credit (up to $2,000) can help offset tuition expenses.
Energy-Efficiency Credits – If you’ve made home energy improvements (think solar panels, energy-efficient HVAC, or windows), you might qualify for a federal tax credit.
Earned Income Tax Credit (EITC) – Designed for moderate-income earners, this credit can reduce taxes significantly—or even result in a refund.
Business Tax Credits – If you’re a business owner, credits like the Research & Development (R&D) Credit and Work Opportunity Credit could mean substantial savings.
The Purple Group Pro Tip: Many people assume tax credits don’t apply to them, but a little strategic planning can make all the difference.
3 - Keeping Track: Your Key to Maximizing Tax Savings
Even if you qualify for deductions or credits, documentation is everything. Here’s how to stay on top of it:
Go Digital – Use apps like QuickBooks, Expensify, or a simple spreadsheet to track expenses throughout the year.
Keep Those Receipts – Whether it’s business expenses, charitable donations, or education costs, keeping digital copies ensures you don’t scramble at tax time.
Set a Tax Review Reminder – Instead of waiting until the last minute, schedule quarterly check-ins to stay on top of tax-saving opportunities.
Partner with a Pro – Navigating tax deductions and credits shouldn’t feel like guesswork. The Purple Group can help you create a plan to optimize your tax strategy year-round.
Make Tax Planning Work for You
At The Purple Group, we’re not about last-minute tax scrambling. We believe in proactive, high-touch planning that makes taxes work for you—not the other way around.
If you’re a business owner, knowing which deductions you qualify for can make a significant impact on your bottom line. That’s why we’ve put together our Tax Deduction Guide for Small Business Owners, packed with insights to help you maximize your savings and avoid missing key opportunities.
Download the guide now and start taking control of your tax strategy today!
Or, if you’re ready to build a tax plan tailored to your unique goals, schedule a consultation with us today—we’d love to help you get ahead.
