Top Tax Deductions You Might Be Missing: Maximize Your 2023 Refund
Tax season can be overwhelming, especially when you’re trying to keep track of all the potential
deductions that could boost your refund. Many taxpayers miss out on substantial savings simply
because they’re unaware of certain deductions. At America’s Tax Doctor, we’re committed to
making sure our clients keep as much of their hard-earned money as possible. Here’s a
breakdown of some top deductions you might be missing and how we can help you maximize
your 2023 refund.
1. Earned Income Tax Credit (EITC)
The Earned Income Tax Credit (EITC) is one of the most valuable credits available for low- to
moderate-income earners, yet many people either overlook it or are unsure if they qualify. This
credit is designed to benefit individuals and families with qualifying incomes and can offer
significant refunds—even if you didn’t owe taxes.
Who Qualifies?
Eligibility for the EITC depends on your income, filing status, and number of dependents. For
example, in 2023, a single filer with no dependents can qualify with an income below $16,000,
while a married couple with three or more dependents can qualify with an income up to $59,187.
How Much Can You Save?
The EITC amount varies, with families with dependents eligible for the highest credits. For
example, a family with three or more qualifying children could receive a credit of up to $7,430.
Even without dependents, eligible individuals can receive a credit that can directly increase their
refund.
2. Self-Employment Deductions
If you’re self-employed, whether as a freelancer, small business owner, or independent
contractor, there are numerous deductions available to reduce your taxable income. Many self-
employed clients miss out on some or all of these valuable deductions:
• Home Office Deduction: If you use a part of your home exclusively for business, you
can deduct certain home expenses, including rent or mortgage interest, utilities, and home
maintenance.
• Vehicle Expenses: For those who use their car for business, mileage and maintenance
costs may be deductible. You can choose between standard mileage or actual expenses
based on which gives you the higher deduction.
• Qualified Business Income (QBI) Deduction: This allows eligible business owners to
deduct up to 20% of their business income.
America’s Tax Doctor can help ensure you capture all of these deductions, making the most of
your self-employed status. Visit our Tax Services page to see how we assist freelancers and small
businesses with maximizing deductions.
3. Medical Expenses
If you or a dependent faced significant medical expenses in 2023, you may be able to deduct
some of those costs. Medical expenses that exceed 7.5% of your adjusted gross income (AGI)
are deductible. Qualifying expenses can include payments to doctors, dentists, hospitals, and
even certain travel costs related to medical care.
Commonly Missed Deductible Medical Expenses:
• Prescription medications
• Dental and vision care
• Medical travel expenses (e.g., mileage for trips to medical appointments)
• Long-term care insurance premiums
Since many taxpayers aren’t aware of the range of deductible medical expenses, this is an area
where we can help you identify savings. Use our Client Resources page to download our
checklist and see what applies to your situation.
4. Education Credits
If you or your dependents attended college or another qualifying educational institution,
education credits like the American Opportunity Tax Credit (AOTC) and the Lifetime Learning
Credit (LLC) can help reduce your tax bill.
Here’s how each works:
• American Opportunity Tax Credit (AOTC): Provides up to $2,500 per eligible student
for the first four years of higher education.
• Lifetime Learning Credit (LLC): Offers up to $2,000 per tax return, available for
tuition and other qualified expenses, without any time limit on years.
To qualify, you’ll need to provide Form 1098-T, which details your tuition expenses for the year.
Be sure to check your mail for this form or contact your educational institution if you haven’t
received it. For additional details, visit our Knowledge Hub for articles on education credits and
how to apply them.
5. Charitable Contributions
Charitable contributions can also reduce your tax bill, but it’s essential to keep accurate records.
Here’s what you should know about claiming charitable deductions:
• Qualified Organizations: Donations must be made to qualifying organizations, such as
registered nonprofits.
• Documentation: Contributions over $250 require a receipt from the organization. For
smaller donations, bank statements or receipts will suffice.
• Non-Cash Contributions: If you donate property, such as clothing or furniture, you can
deduct the fair market value of these items.
Our Client Resources page has a checklist to help you document charitable contributions,
ensuring you capture the full value of these deductions.
6. State and Local Taxes (SALT)
If you paid state and local taxes, including property and income or sales tax, you can deduct
these on your federal return up to $10,000 (or $5,000 if married filing separately). This deduction
can be especially valuable for taxpayers in states with higher income or property taxes.
Example:
• Property Taxes: If you own a home, you may be eligible to deduct property taxes.
• Income or Sales Taxes: You can choose to deduct either state and local income taxes or
state and local sales taxes, whichever is more advantageous.
Our Tax Services team can help you determine which option is most beneficial. Visit our Tax
Services page to learn more about our personalized tax preparation options.
Get Started with America’s Tax Doctor At America’s Tax Doctor, our goal is to help clients maximize their deductions and minimize their tax liabilities. We take the time to review each client’s unique situation, ensuring no savings opportunities are overlooked. If you’re ready to get the most out of your tax return, start by completing our Tax Intake Form on our Client Resources page.
Need additional support? Visit our Knowledge Hub for articles, tools, and resources, or reach out
via our Contact Form to discuss your tax needs with one of our experts.
