Tax season always feels like a scramble. You’re hunting for receipts, trying to remember if that donation counts and wondering if you’re leaving money on the table. Chances are, you probably are. Many taxpayers miss valuable deductions simply because they don’t know they exist or assume they don’t qualify.
Here are 10 commonly overlooked tax deductions and credits that could save you hundreds or even thousands in 2026.
1. HSA Contributions
If you have a high-deductible health plan, contributing to a health savings account is one of the best tax shelters available. For 2026, you can contribute up to $4,400 for individual coverage or $8,750 for family coverage.
HSAs offer triple tax benefits. Contributions are made pretax, the money grows tax-free and withdrawals for qualified medical expenses are also tax-free. You have until the tax filing deadline in April 2027 to make contributions for 2026.
Many people forget about this deduction entirely because they assume only their employer contributions count. But you can contribute on your own and still get the tax benefit.
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2. Child and Dependent Care Credit
If you pay for child care so you can work, this credit just got better. Starting in 2026, the child and dependent care tax credit allows you to claim up to 50% of qualifying expenses, up from 35% in previous years.
You can count up to $3,000 in expenses for one qualifying dependent or $6,000 for two or more. That means a maximum credit of $1,500 for one child or $3,000 for multiple children if your income is $15,000 or less. The credit phases down as income rises but remains available at 20% even for higher earners.
Summer day camps count. Preschool tuition counts. Even payments to relatives who babysit can qualify, as long as they’re not your spouse or someone you claim as a dependent.
3. Traditional IRA Contributions
Even if you didn’t contribute to an IRA all year, you still have time. You can make contributions up to the tax filing deadline in April and lower your taxable income for 2026.
For tax year 2026, the annual contribution limit for personal IRAs (traditional or Roth) rises to $7,500 (up from $7,000 in 2025). If you’re age 50 or older by the end of the year, you can make an additional “catch-up” contribution of $1,100, bringing your total allowable contribution to $8,600 in 2026.
This deduction can literally move you into a lower tax bracket. If you’re single and your income is just over $48,475, contributing enough to bring it below that threshold drops you from a 22% to a 12% tax rate.
4. Senior Deduction for Ages 65 and Older
Here’s a new one many retirees don’t know about yet. If you’re 65 or older, you may qualify for an additional tax deduction of up to $6,000 for individuals or $12,000 for married couples filing jointly.
The deduction phases out for taxpayers with modified adjusted gross income over $75,000 for individuals or $150,000 for joint filers. This is separate from the additional standard deduction seniors already receive.
5. Car Loan Interest Deduction
A new provision in the 2025-28 tax window allows some taxpayers to deduct up to $10,000 per year in interest paid on qualifying new auto loans, but this deduction has strict rules and is not guaranteed for every borrower.
This deduction applies only to qualifying passenger vehicles purchased between 2025 and 2028 under the rules created by the recent tax legislation. The IRS still needs to issue final guidance, but the law already outlines several requirements:
- Only certain vehicles qualify. Eligibility depends on vehicle type, price limits and lending requirements specified in the new law.
- Your lender must provide an IRS-approved statement reporting your deductible interest. Without this documentation, you cannot claim the deduction.
- Whether you can claim this without itemizing is not final yet. Early summaries suggest it may be available to non-itemizers, but the IRS has not released definitive instructions.
- The deduction ends after 2028 unless Congress extends it.
6. Medical Expenses Above 7.5% of Income
If you had a high-cost medical year, you might be able to deduct more than you think. You can deduct medical expenses that exceed 7.5% of your adjusted gross income.
People forget to include dental work, glasses, contacts, mental health therapy, medical travel mileage and certain over-the-counter medications. If your income is $100,000, you can deduct medical expenses above $7,500.
7. Student Loan Interest Deduction
Even if you didn’t pay much, you can deduct up to $2,500 of student loan interest. This is an above-the-line deduction, so you can claim it even if you take the standard deduction.
The deduction phases out for single filers with modified adjusted gross income above $85,000 and joint filers above $170,000. Many people miss this simply because they don’t realize payments restarted after the pandemic pause.
8. Energy-Efficient Home Improvement Credits
This is a big one people overlook. You can get tax credits for installing heat pumps, insulation, new windows and doors, battery systems, solar panels, electric water heaters and EV chargers.
Some credits cover up to 30% of the project cost. These credits can save thousands if you make major home improvements.
9. Charitable Deductions for Non-Itemizers
You no longer have to itemize to get credit for charitable giving. Starting with 2026 tax returns, you can claim up to $1,000 in cash donations if you’re filing single or $2,000 if you’re married filing jointly.
This is on top of your standard deduction. Don’t forget to track mileage driven for charity work and out-of-pocket expenses for volunteering.
10. Lifetime Learning Credit
If you took any courses, you might qualify for the lifetime learning credit worth up to $2,000 per year. This covers community college, online courses from accredited schools and certification programs.
The credit is worth 20% of up to $10,000 in qualified expenses. It’s available for taxpayers with modified adjusted gross income under $90,000 for single filers or under $180,000 for married couples filing jointly.
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This article originally appeared on GOBankingRates.com: 10 Tax Deductions and Credits You’re Probably Missing That Could Save You Thousands in 2026 and Beyond
