2024's Most Searched Tax Deductions Could Land You A Big Refund

While no one necessarily enjoys thinking about their taxes before the New Year, it can ultimately pay to plan ahead. Not only can filing early get you your tax return earlier, but it can also help you avoid any potential fees and/or penalties for missing the filing deadline. If you're thinking that wouldn't happen to you, you might be surprised to learn just how many people end up missing the filing deadline due to rejected returns from errors like forgetting to sign your tax return. All of this to say, filing early can help to prevent the confusion and added stress of missing the deadline or even having to file for an extension (for the 2023 tax season, the IRS estimated that a whopping 19 million taxpayers filed for an extension).

Now, when it comes to actually filing, there can be a LOT to know. From your status (single, married, married filing separately) to your individual income types, filing can often feel overwhelming. Perhaps one of the most important things to know before filing this upcoming tax season is what deductions and tax credits might be available to you. This can not only save you money on any potential money you might owe, but could even improve your odds of receiving a tax return for this year. According to a 24/7 Wall St. analysis of Google search terms and trends, some deductions in particular have been especially popular among consumers wanting to learn more about their taxes.

Some of the most popular searches for deductions centered on the basics of what, exactly, deductions are. At its simplest, a tax deduction is anything that reduces your taxable income amount. These deductions, or credits, effectively lower your reported income amount which then lowers your tax liability and reduces how much you might owe for your tax year. This can be especially important if you are on the border of two different tax rates with your current income (we broke down an easy way to tell which federal tax bracket you fall into). It's important to not only know the federal deductions available, but also any state options that might also be available to you.

For instance the federal deduction, also known as the standard deduction, applies to anyone who does not file for an itemized deduction on their taxes. The standard deduction amount increased in 2024 to $29,200 for a married couple filing jointly, $21,900 for those filing as head of household, and $14,600 for anyone filing as either single or married filing separately. It's important to realize that the standard deduction is both a fixed amount and that it applies to anyone. Perhaps most significantly, using the standard deduction can be a significantly easier option when filing. With that said, some taxpayers might find itemizing more financially helpful depending on their individual expenses and claims they want to make (i.e. mortgage interest, or even applying for more complicated deductions).

Now that we've gone through the more simple and fundamental tax deductions to know about, there are some other, more specific, deductions that could also help you out this tax season. For starters, deductions like the Child Tax Credit can be useful for those with children age 17 and younger. By utilizing this credit you can get up to $2,000 per qualifying dependent child. However, it's important to know that this credit only applies to those whose annual income falls below $200,000 if single, or below $400,000 if married filing jointly, according to the IRS.

Another popularly searched deduction that could be useful for consumers is the student loan interest deduction. This deduction allows former students to write off up to $2,500 from their taxable income, provided they paid interest as part of their student loan repayments during the year. Plus, this deduction is claimed as an adjustment to your total income, so you don't have to worry about the extra work of filing an itemized deduction.

For those that feel especially giving during the holiday season, it could be worth looking into charitable contribution deductions. These deductions allow taxpayers to write off their cash or even furniture and goods donations to qualified organizations. However, it's important to keep in mind that the actual amount of charitable cash contributions that you can deduct through an itemized deduction is usually limited to 60% of your adjusted gross income. Make sure to check the IRS' updated annual rules and guidelines for charitable limits.