I Asked ChatGPT for Tax Deductions Most People Miss -- Here's What It Said

Laura BogartSat, March 28, 2026 at 12:03 PM UTC

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With tax season in full swing, many of your friends and family members are likely celebrating their refunds or grousing about what they owe. It might remind you that you still haven’t filed your taxes.

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The bad news is that you’ve got to get on that. The good news? You may still have time to take advantage of deductions that earlier filers missed or overlooked.

While a tax professional is best equipped to help you determine which deductions you personally qualify for, I figured I’d give myself — and you — a head start by asking ChatGPT to list tax deductions many people tend to miss.

Here’s what it came up with.

1. State Sales Tax (Instead of Income Tax)

ChatGPT says that if you live in a state with no income tax — or if you made a large purchase such as a car or major appliance — “you can deduct state sales tax instead of state income tax.”

The key word here is "instead." You can deduct either state income tax or state sales tax — not both — and only if you itemize deductions. ChatGPT noted that many taxpayers forget this option entirely, especially those in states without an income tax.

2. Home Office Deduction

Odds are, you know about this deduction — and maybe even dismissed it. After all, isn’t it only for full-time business owners with an entire room devoted to work?

Not necessarily. According to ChatGPT, “If you’re self-employed or freelancing, you may qualify — even if it’s just a small, dedicated space.” It added that this deduction can include a portion of rent or mortgage interest, utilities, insurance and internet costs, depending on how much of your home you use for work. W-2 employees, however, generally do not qualify for this deduction.

3. Mileage for Medical or Volunteer Work

Most people know they can deduct business mileage, but ChatGPT flagged two commonly overlooked categories: medical-related travel and volunteer driving.

If you drive to medical appointments or rack up miles volunteering for a qualified charity, those miles may be deductible if you itemize. The rates are lower than the business mileage rate, but they can still add up — especially over the course of a year.

4. Student Loan Interest

Student loan debt may be a bane of your financial existence most days, but during tax season, you can make it work to your advantage.

The AI says you should see if you’re eligible to deduct up to $2,500 in interest, even if you don’t itemize deductions. This is an “above-the-line” deduction, meaning it directly reduces your taxable income, though income limits do apply.

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5. Non-Cash Charitable Donations

Doing good is its own reward — but ChatGPT would still like you to deduct it.

If you donate clothing, furniture or other household goods to qualified organizations such as Goodwill Industries or The Salvation Army, you may be able to deduct their fair market value.

The catch? You must have records to prove it. ChatGPT warned that failing to track what you donated and its reasonable value could cause you to miss out on the deduction or create problems if you’re audited.

6. Medical Expenses (Even Partial)

Shouldering medical expenses can be a major financial and personal burden. While the IRS can’t alleviate all of that burden for you, it does offer a potential deduction.

ChatGPT shared that if your medical expenses exceed 7.5% of your adjusted gross income, you may be able to deduct costs related to:

Dental and vision care

Mental health services, such as therapy

Prescription medications

The AI added that travel costs related to care often go overlooked. So, you may want to look into them.

7. Self-Employment Expenses

For freelancers and independent contractors, deductions can be a powerful tool — if you know where to look.

ChatGPT said many self-employed taxpayers miss smaller deductions that can still meaningfully reduce taxable income, such as:

Software subscriptions

Online tools and services

Job-related education or certifications

Do yourself a favor: Save every receipt associated with these potential deductions. Accurate recordkeeping is important for all taxpayers, but it’s especially critical for freelancers.

The Bottom Line

As you prepare your taxes, don’t overlook the deductions that could help put a little more money back in your pocket. ChatGPT also reminds you that although tax software can help make the process smoother, it only works if you enter everything.

“These tools don’t ‘guess’ missed deductions,” the AI wrote.

Now that you’ve got this information from ChatGPT, you don’t have to, either.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.

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Source: “AOL Money”