Uncommon Tax Deductions You Might Be Missing in 2025 (and How the New Tax Law Changes Them)
This post started with a casual conversation with my girlfriend. She’s a teacher and asked me about the $300 deduction for school supplies. Side note: if you’re not discussing tax credits with your significant other, you’re missing out on peak romance.
Anyway, that tiny $300 got me thinking about a handful of tax breaks most people don’t know about. Let’s break them down.
1. Educator Expense Deduction - Big Changes Coming in 2026
Currently, eligible educators can deduct up to $300 for classroom expenses ($600 if both spouses are eligible). This covers books, supplies, tech, and more.
But starting in 2026, the cap disappears if you itemize deductions, meaning teachers could write off all unreimbursed expenses, whether that’s $300 or $3,000.
Bottom line: The $300 limit stays in effect for 2024 and 2025. In 2026, teachers who itemize could see a much bigger break.
2. Energy Credits - The Clock Is Ticking
The federal tax credits for clean energy upgrades - such as solar panels, energy efficient HVAC systems, insulation, windows, and more - are ending soon.
Residential Clean Energy Credit and Energy-Efficient Home Improvement Credit: Ends December 31, 2025.
EV Tax Credit: Ends September 30, 2025.
If you’ve been eyeing a green upgrade, now’s your chance to take advantage of the tax credit before Uncle Sam closes the door.
3. Massachusetts Commuter and Rental Deductions
If you live in MA, you’ve got two under-the-radar deductions:
Commuter deduction: Deduct certain MBTA, parking, or toll costs above $150/year.
Rental deduction: Deduct up to 50% of rent paid, capped at $4,000.
These are state-specific, so the new federal law doesn’t affect them.
4. Connecticut Property Tax Credit
Connecticut residents can claim a credit of up to $300 for property taxes paid on a home or vehicle. Income limits apply, but it’s an easy win if you qualify.
5. Education Credits and Loan Interest - Expanded Options
The new law makes a few friendly adjustments here:
American Opportunity Tax Credit (AOTC): Still worth up to $2,500 per student, with minor inflation-based phase-out adjustments.
Lifetime Learning Credit (LLC): Still $2,000 per return. Great for grad students and continuing ed.
Student Loan Interest Deduction: Still up to $2,500, but now with higher income limits, meaning more borrowers qualify.
New Vehicle Loan Interest Deduction (New for 2025): Deduct interest on loans for certain new cars, including hybrids and EVs, if you meet the income and price caps.
6. Medical Transportation Costs - Often Overlooked
If you itemize, you can deduct transportation costs for medical purposes:
Mileage to and from medical appointments (21¢ per mile in 2025)
Parking fees at hospitals or clinics
Bus, train, taxi, or rideshare fares for treatment
Not a huge deduction on its own, but for those with ongoing treatments, it adds up.
Final Thoughts
Some deductions save a little. Some save thousands. Either way, it’s worth talking to a tax pro about all the breaks you qualify for, especially with the new law reshuffling some of the rules.
Tax rules change. Opportunities disappear. Don’t miss the ones that could keep more money in your pocket.