Tax Deductions & Credits: Are You Leaving Money on the Table?

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

Every tax season, millions of Americans unknowingly pay more than they should. Why? Because they overlook deductions and credits that they’re legally entitled to claim. These missed opportunities can cost you hundreds—sometimes thousands—of dollars each year.

Let’s break down what tax deductions and credits are, why they matter, and how to make sure you’re not leaving money on the table.

Tax Deductions vs. Tax Credits—What’s the Difference?

Tax deductions reduce the amount of your income that’s subject to tax. For example, if you earn $80,000 and claim $10,000 in deductions, you’ll only be taxed on $70,000.

Tax credits, on the other hand, reduce the actual amount of tax you owe—dollar for dollar. If your tax bill is $5,000 and you qualify for a $1,500 credit, you only pay $3,500.

Credits generally offer more savings than deductions, but both play an important role in minimizing your tax liability.

Commonly Missed Tax Deductions

Even with software or basic tax prep, many people overlook deductions such as:

• Home office expenses (if you work from home and meet IRS guidelines)
• State sales tax (especially for big-ticket purchases)
• Charitable contributions (cash, goods, or mileage for volunteer work)
• Medical expenses (above certain income thresholds)
• Education expenses (including student loan interest)

Popular Tax Credits You Might Qualify For

Credits can be especially powerful. A few examples include:

• Earned Income Tax Credit (EITC) for low-to-moderate income earners
• Child Tax Credit for qualifying dependents
• American Opportunity Credit for college tuition and fees
• Energy-Efficient Home Credits for eco-friendly upgrades
• Adoption Credit for qualified adoption expenses

Why a Tax Strategist Makes the Difference

While DIY tax filing can handle straightforward situations, it’s easy to miss deductions and credits if you don’t know the rules—or if your financial picture is more complex. A professional tax strategist doesn’t just prepare your return; they identify opportunities you might never consider, and they plan proactively to maximize your savings year after year.

The Bottom Line
Tax deductions and credits are like hidden money—money you’ve already earned. But without the right knowledge or guidance, you could be handing it right back to the IRS. The smartest move? Review your situation with a tax professional who knows how to find every dollar you’re entitled to keep.

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About the Author
Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 Disclosure:
This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.