Paying taxes is inevitable, but overpaying? That's often avoidable. As a middle-class family, you navigate a complex financial landscape – juggling mortgages, childcare, education costs, and saving for the future. Amidst this balancing act, valuable tax deductions frequently slip through the cracks, leaving hard-earned money on the table. Many deductions aren't headline-grabbers like mortgage interest; they're the quiet, often-missed opportunities buried in IRS publications. This guide shines a light on 23 frequently overlooked tax deductions specifically relevant to middle-class families. We'll move beyond the basics, diving into the details, eligibility requirements, and why these deductions are so commonly missed. Understanding these can translate into significant tax savings, putting more money back into your family budget. Why Deductions Get Overlooked: * Lack of Awareness: Many deductions aren't widely publicized. * Record-Keeping Hurdles: Proving some expenses requires diligent documentation that many find burdensome. * Assumption They Don't Qualify: Income phase-outs or specific criteria can lead families to assume they aren't eligible without checking. * Focus on Itemizing: While the standard deduction is higher now, itemizing can still be beneficial, especially with state and local taxes (SALT) and these combined overlooked deductions. * Complexity: Tax laws change, and deciphering eligibility can be daunting. Important Considerations Before We Begin: * Itemizing vs. Standard Deduction: You can only claim most of these deductions if you itemize deductions on Schedule A (Form 1040). Compare the total of your itemized deductions (mortgage interest, SALT, charitable contributions, plus these others) to the standard deduction for your filing status. If your itemized total is higher, itemizing saves you money. The higher standard deduction post-2017 means fewer people itemize, but don't automatically assume you shouldn't – calculate it! * AGI Limitations: Many deductions (especially medical and miscellaneous) are subject to limitations based on your Adjusted Gross Income (AGI). Expenses must often exceed a percentage of your AGI before they become deductible. * Documentation is King: The IRS requires proof. Keep receipts, cancelled checks, mileage logs, statements, and any other relevant documentation for at least three years after filing. * Tax Professional: While this guide is informative, consulting with a qualified tax professional (CPA or Enrolled Agent) is always recommended, especially for complex situations. They can provide personalized advice based on your specific circumstances. * State Taxes: Remember state tax rules may differ significantly from federal rules. A deduction allowed federally might not be allowed by your state, and vice versa. The 23 Overlooked Deductions: Category 1: Family & Education * Student Loan Interest Paid by Parents: If parents are legally obligated to pay back their child's student loan (and actually make the payments), they can typically deduct up to $2,500 of the interest paid, even if the child is no longer a dependent. Why Overlooked? Many assume only the borrower (the child) can deduct it, but the IRS allows the payer to deduct it if they are legally responsible. The child cannot claim it if the parents do. * Dependent Care Flexible Spending Account (FSA) Contributions: Money you contribute pre-tax to a Dependent Care FSA through your employer reduces your taxable income. The maximum contribution is $5,000 per household ($2,500 if married filing separately). Why Overlooked? Often confused with the Child and Dependent Care Credit. The FSA is use-it-or-lose-it and requires enrollment during open season. The credit is claimed separately on your tax return and has different income limits. * Educator Expenses: K-12 teachers, instructors, counselors, principals, or aides who work at least 900 hours during a school year can deduct up to $300 ($600 if married filing jointly and both are eligible educators) of unreimbursed classroom expenses. Why Overlooked? It's an above-the-line deduction (you don't need to itemize!), but many educators either don't know about it or don't keep track of their small purchases (books, supplies, software, PPE). * College Savings Plan (529 Plan) State Tax Deductions: While 529 plan earnings are tax-free when used for qualified education expenses, many states also offer a state income tax deduction or credit for contributions made to their plan. Why Overlooked? Federal deduction doesn't exist for contributions, so people forget to check their state's specific benefits. Amounts and eligibility vary widely by state. * American Opportunity Tax Credit (AOTC) / Lifetime Learning Credit (LLC): While not strictly "overlooked," families often leave money on the table by not fully understanding eligibility or choosing the wrong credit. The AOTC (up to $2,500 per eligible student for the first 4 years) is often more valuable than the LLC (up to $2,000 per return). Income limits apply. Why Overlooked? Complexity in claiming, coordination with other education benefits, and phase-out ranges cause confusion. Category 2: Home & Property * Mortgage Points (Origination Points): Points paid to secure a mortgage (not points paid for services like appraisal or title fees) are generally deductible in the year paid if it's your primary residence and points are common in your area. If you refinance, points are usually amortized over the life of the new loan. Why Overlooked? Points are often rolled into the loan amount, so people forget they paid them. Refinance points are especially easy to miss amortizing. * Private Mortgage Insurance (PMI) Premiums: For mortgages originated after 2006, PMI premiums paid might be deductible if your AGI is below certain thresholds ($100,000 for MFJ; phases out above that). Why Overlooked? This deduction has expired and been reinstated multiple times, leading to confusion about its availability. It is available for 2023 taxes (as of this writing, but always confirm current year status). It also phases out at relatively moderate income levels. * Home Office Deduction (Strictly for Self-Employed): If you are self-employed or run a business and use part of your home exclusively and regularly as your principal place of business, you can deduct a portion of home expenses (utilities, rent, mortgage interest, property tax, repairs, depreciation). Why Overlooked? Employees working from home for an employer cannot deduct home office expenses (TCJA eliminated this). Many self-employed people fear an audit or find the…