Core Insights - Tax deductions can significantly reduce taxable income, helping individuals lower their overall tax bill. While many claim the standard deduction, there are numerous lesser-known opportunities that can enhance tax savings [1]. Group 1: Common Tax Deductions - Medical Expenses: Individuals with high medical expenses exceeding 7.5% of their adjusted gross income can deduct these costs, including travel expenses for medical appointments and certain home modifications for medical care [3]. - Child and Dependent Care Credit: This federal tax credit assists eligible taxpayers in covering care costs for qualifying individuals, such as children under 13, allowing for deductions up to $3,000 ($6,000 for two or more qualifying persons) [4][5]. - Student Loan Interest: Eligible borrowers can deduct up to $2,500 in interest paid on qualified federal and private student loans each year, applicable to loans for educational expenses for themselves, their spouse, or dependents [5].