Taxpayers may be leaving thousands in savings on the table by missing key deductions and credits set to remain in effect through 2026. From energy-efficient home upgrades to student loan interest, these lesser-known benefits can significantly reduce taxable income or generate direct refunds.
- Residential Clean Energy Credit: up to 30% of installation costs, capped at $1,200 per property
- Clean Vehicle Credit: up to $7,500 for new EVs, $4,500 for used models
- Student Loan Interest Deduction: up to $2,500 annually, phased out at $90,000 individual income
- Lifetime Learning Credit: up to $2,000 per return for qualified education expenses
- Educator Expense Deduction: up to $300 for classroom supply costs
- Saver’s Credit: up to $1,000 (or $2,000 jointly) for retirement contributions
Many filers overlook tax advantages that could lower their 2026 liability by hundreds or even thousands of dollars. While standard deductions and common credits like the Child Tax Credit are widely known, several underutilized provisions offer substantial savings for those who qualify. These include credits for electric vehicle purchases, residential clean energy investments, and education-related expenses. The federal Residential Clean Energy Credit allows taxpayers to claim up to 30% of the cost of qualified solar panel, battery storage, and heat pump installations, with a maximum credit of $1,200 per property. Similarly, the Clean Vehicle Credit provides up to $7,500 for eligible new electric vehicles and $4,500 for used EVs, though income and vehicle manufacturing requirements apply. For those with student loans, the Student Loan Interest Deduction remains available, capping at $2,500 in deductible interest per year for individuals earning under $90,000 ($180,000 for joint filers). Other overlooked benefits include the Lifetime Learning Credit, which offers up to $2,000 per tax return for qualified tuition and fees for undergraduate, graduate, and professional degree courses. The Educator Expense Deduction allows up to $300 in out-of-pocket classroom supplies for eligible K–12 teachers. Additionally, the Saver’s Credit can provide up to $1,000 (or $2,000 for married couples) for contributions to retirement accounts by low- and moderate-income workers. These provisions not only reduce tax liability but also incentivize long-term financial planning and sustainable living. Individuals who fail to claim them forfeit eligible savings, particularly those in higher-income brackets who may not realize the full scope of available benefits. Tax professionals recommend thorough documentation and timely filing to maximize these opportunities.