When it comes to taxes, the name of the game is to pay what you owe. No more, no less. But with thousands of pages of tax code and ever-changing regulations, it’s no surprise that even trained professionals occasionally miss valuable deductions. What’s more surprising? Some of the most overlooked tax write-offs are perfectly legal and surprisingly common.
Accountants are skilled at catching the big stuff—home offices, mileage, charitable donations—but there are niche deductions and nuanced expense categories that often fly under the radar, especially for freelancers, small business owners, or gig workers who may not fit the mold of traditional employment.
Whether you’re doing your taxes yourself or working with a CPA, it’s worth knowing which secret write-offs could apply to you. After all, it’s your money—and every legitimate deduction is a chance to keep more of it.
1. Out-of-Pocket Work Expenses for W-2 Employees
Many people assume that only self-employed individuals can deduct business expenses, but some W-2 employees may still be able to write off unreimbursed work-related costs, especially those in professions that require tools, uniforms, or specialized gear.
Though recent tax reforms limited these deductions at the federal level, they may still apply on state tax returns, depending on where you live. If you’ve paid for job-related training, licenses, or travel out of your own pocket, you might be leaving money on the table.
2. Tax Prep Fees (Even From Last Year)
You can deduct the cost of having your taxes prepared, including software like TurboTax or H&R Block, or fees paid to a CPA. What’s often forgotten is that these deductions are claimed the following year. So, if you paid for tax prep last April, you may be able to write off that amount on your current return. It’s a small deduction, but it adds up, especially if you itemize or run a business.
3. Freelancer Use of Personal Devices
Many freelancers and gig workers use their personal laptops, smartphones, and even home Wi-Fi for business but fail to track and deduct the usage percentage. While you can’t deduct the full cost of your personal phone, you can deduct the portion used for business—if you keep reasonable records.
Apps, cloud storage, and other tech-related expenses can also count, especially if they’re essential to the work you’re performing. A few missed receipts here and there could equal hundreds of untapped dollars.
4. Meals—Yes, Even the Coffee Shop Kind
The IRS allows a deduction for business meals if the meal is directly related to business activities. While most people know this, they often forget to log more casual yet still deductible scenarios, like meeting a client at a coffee shop or grabbing lunch during a work-related conference. As long as you document who you were with and what was discussed, you may be eligible to deduct 50% of the cost. Just keep those receipts and be prepared to explain them if asked.
5. Unused Inventory or Product Samples
If you’re a small business owner or side hustler, unsold inventory or promotional products that are no longer sellable might be deductible as a loss. Similarly, product samples given away for marketing purposes are often deductible expenses, but many people don’t account for them properly.
It’s critical to maintain accurate records of inventory changes and to document the business intent behind any loss or giveaway. In some industries, this can be a major tax benefit.
6. Bank Fees and Payment Processing Costs
Using PayPal, Square, Venmo Business, or another online processor? The fees you pay per transaction are considered a business expense and are often forgotten, especially if you don’t use traditional bookkeeping software.
Bank account fees for business checking accounts or overdraft charges related to business activity are also potentially deductible. It might take a little combing through your statements, but it’s worth the effort.
7. Educational Courses and Certifications
Courses, webinars, and even books related to your current profession can be deductible, but only if they maintain or improve your skills, not if they qualify you for a new profession. This gray area leads many to skip the deduction altogether.
If you’re a designer taking advanced Adobe classes or a therapist attending a continuing education seminar, those fees are likely deductible. Just be careful to keep records of how the education ties directly to your existing role.
8. Home Office Percentage of Homeowners Insurance and Security
If you claim a home office deduction, don’t stop at utilities. You may be able to include a portion of your homeowner’s insurance, home repairs that benefit the office, and even your home security system, especially if that system protects valuable business equipment.
Many people forget these connected expenses, even though they’re part of the same overall deduction. The key is calculating the percentage of your home used exclusively and regularly for business.
9. Business Use of Your Car (Beyond Mileage)
Most people are aware they can deduct mileage or actual vehicle expenses, but don’t forget about the extras. Parking fees, tolls, and car washes used for a business vehicle are also deductible, but are frequently forgotten. If you deliver, drive for work, or visit clients, these expenses can stack up quickly. Keep a log or use a mileage-tracking app to stay consistent.
10. Hobby-to-Business Transition Costs
If you’ve recently turned a hobby into a business, there are likely several early costs you can write off—website domains, social media ads, business cards, or supplies used during the transition. Many don’t realize these expenses are deductible once your business is officially active, even if the income was minimal that year. To qualify, you need to show an intent to make a profit and keep clear records.
These Seem Small, But Can Save You Hundreds
The tax system is already complex. Don’t let it cost you more than it should. These lesser-known deductions may require extra effort to track and verify, but the savings can be substantial. Whether you’re filing solo or working with a professional, it pays (literally) to know what write-offs are hiding in plain sight.
Which of these secret deductions surprised you most, and have you ever caught one your accountant missed?
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