Free Guide — K&K Tax Services LLC
Deductions High Earners Miss
And What They Cost You.
If you're making $75K or more as a W-2 employee or business owner — this guide was written for you. These are the deductions most people never claim, and they could save you thousands.
Prepared by Kennedy Blackwell · AFSP · EFIN Holder · K&K Tax Services LLC · (313) 751-3358
Before We Start
Here's the truth nobody tells high earners: the more you make, the more the IRS expects you to know — and the more expensive it gets when you don't.
Most people at your income level are overpaying because they're using a preparer who doesn't dig deep enough, or they're filing themselves without knowing what actually applies to them.
This guide covers the deductions that are most commonly missed by W-2 employees earning $75K+ AND business owners earning $100K+. Some apply to both. Some are specific to your situation. Read all of it — there's money in here for you.
💼 W-2 Employees ($75K+)
You may think you can't deduct much because you get a paycheck. You'd be surprised. Several high-value deductions are available to you — especially if you have a side hustle, investments, or own a home.
🏢 Business Owners ($100K+)
Your deduction opportunities are significantly larger. But they require documentation, structure, and a preparer who actually understands business taxes — not just a W-2 filer in disguise.
01
Student Loan Interest Up to $2,500
If you're paying back student loans, up to $2,500 of the interest you paid may be deductible — even if you don't itemize. This is an above-the-line deduction, meaning it reduces your taxable income directly. Many people don't claim it simply because they don't know it exists.
K&K Note: Income limits apply. If your AGI is above a certain threshold it phases out. Let us check your eligibility — don't assume you don't qualify.
02
Traditional IRA Contributions Up to $7,000
Contributing to a Traditional IRA can reduce your taxable income by up to $7,000 ($8,000 if you're 50+). If you're not covered by a workplace retirement plan, this deduction is available regardless of income. If you are covered by a workplace plan, income limits apply — but many high earners still qualify for a partial deduction.
K&K Note: You can make IRA contributions for the prior tax year up until Tax Day. That means you can reduce last year's tax bill right now.
03
Health Savings Account (HSA) Triple Tax Benefit
If you have a high-deductible health plan, contributions to your HSA are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are tax-free. That's three separate tax advantages in one account. For 2025 the contribution limit is $4,150 (self) or $8,300 (family).
K&K Note: Many people contribute through payroll and never deduct the full amount on their return. Make sure every dollar contributed is being captured.
04
Mortgage Interest & Property Taxes Itemized
If you own a home and itemize deductions, the interest on your mortgage (up to $750,000 in loan principal) and your property taxes (up to $10,000 combined with state income tax) can significantly reduce your taxable income. For high earners this often exceeds the standard deduction.
K&K Note: Whether to itemize or take the standard deduction depends on your specific numbers. We run both calculations for every client — most people just pick one without checking.
05
Charitable Contributions Cash + Non-Cash
Cash donations, donated goods, and even mileage driven for charitable purposes can be deducted if you itemize. Non-cash donations (clothes, furniture, electronics) need to be valued and documented. Many people donate regularly but never track or claim it.
K&K Note: Always get a receipt. For donations over $250 you need written acknowledgment from the organization. Donated items need a fair market value — not what you paid originally.
06
Side Hustle / Freelance Deductions Schedule C
If you earn any income outside your W-2 — Uber, DoorDash, freelance work, selling products, content creation — you file a Schedule C. That opens up a wide range of deductions: mileage, phone, equipment, subscriptions, home office, and more. These deductions offset your side income and can reduce your overall tax bill.
K&K Note: This is one of the most overlooked opportunities for W-2 employees. Even a small side hustle can unlock hundreds in deductions. Don't leave it on the table.
01
Home Office Deduction Dedicated Space Required
If you have a space in your home used regularly and exclusively for business, you can deduct a portion of your rent or mortgage, utilities, internet, and insurance based on the square footage of that space. This deduction is commonly missed — and commonly done wrong.
K&K Note: "Regular and exclusive" means that space is ONLY used for business. A desk in your bedroom doesn't qualify. A dedicated room or clearly defined area does. Document it properly.
02
Vehicle & Mileage 67 cents/mile in 2024
Every mile driven for business purposes — client meetings, supply runs, site visits, bank trips for your business — is deductible. You can use the standard mileage rate or deduct actual vehicle expenses (gas, insurance, maintenance, depreciation). The standard mileage method is often more valuable and easier to track.
K&K Note: You need a mileage log. Date, destination, purpose, miles. Without documentation the IRS won't allow it. Use an app like MileIQ or even a notes document in your phone.
03
Section 179 & Bonus Depreciation Equipment & Assets
When you purchase equipment, machinery, computers, or other business assets, you don't have to deduct the cost over several years. Section 179 allows you to deduct the full cost in the year of purchase, up to $1.16 million. Bonus depreciation allows additional immediate deductions on qualifying assets.
K&K Note: Bought a new laptop, camera, printer, or even a vehicle used for business? This deduction could cover the entire cost in one year instead of spreading it over 5-7 years.
04
Self-Employed Health Insurance 100% Deductible
If you're self-employed and pay for your own health insurance — including dental and vision — 100% of those premiums are deductible. This is an above-the-line deduction that reduces your AGI directly. If you're paying $400-$600/month in premiums, that's $4,800-$7,200 off your taxable income annually.
K&K Note: This also covers premiums paid for your spouse and dependents. Most self-employed people know about this deduction but forget to include all covered family members.
05
Retirement Plan Contributions SEP-IRA up to $69,000
As a business owner you have access to retirement accounts that go far beyond the standard 401(k). A SEP-IRA allows you to contribute up to 25% of net self-employment income — up to $69,000 for 2024. A Solo 401(k) allows both employee and employer contributions for even larger deductions.
K&K Note: This is one of the most powerful tax reduction tools available to business owners. If you're not maximizing your retirement contributions you are leaving significant money with the IRS every single year.
06
Business Meals 50% Deductible
Meals with clients, referral partners, or team members where business is discussed are 50% deductible. You need to document who was there, what was discussed, and keep the receipt. This doesn't mean every restaurant meal is deductible — it has to have a clear business purpose.
K&K Note: Write a quick note on the receipt or in your phone right after — who you met with and what you discussed. That documentation is all you need. Most people skip this and lose hundreds in deductions per year.
07
Professional Services & Education Fully Deductible
Legal fees, accounting fees, tax preparation fees, coaching, courses, books, certifications — if they are directly related to your business, they are deductible. The education must maintain or improve skills required in your current business. Starting a new career doesn't qualify.
K&K Note: Your tax prep fee is deductible. Your business coaching is deductible. Your industry courses and certifications are deductible. Are you tracking all of these?
08
Phone, Internet & Software Business % Deductible
The business-use portion of your phone and internet bill is deductible. If you use your phone 70% for business, 70% of your monthly bill is deductible. Software subscriptions — accounting tools, CRM, scheduling apps, design software — used for your business are fully deductible.
K&K Note: Be honest about the business-use percentage. The IRS looks at this. But don't shortchange yourself either — most business owners use their phone predominantly for business.
09
Qualified Business Income (QBI) Deduction Up to 20% of Net Income
Pass-through business owners — sole proprietors, partnerships, S-Corps — may be able to deduct up to 20% of their qualified business income. This is one of the largest deductions available to business owners and it was created specifically to reduce the tax burden on small businesses. Income limits and business type restrictions apply.
K&K Note: This deduction can save you thousands but it's complicated to calculate correctly. This is exactly why having a knowledgeable preparer matters — it's not automatic and not everyone qualifies.
⚠️ Important Reminder
This guide covers general deduction opportunities for informational purposes. Eligibility for each deduction depends on your specific tax situation, income level, filing status, and documentation. Rules change annually. Always work with a qualified tax professional before making deduction decisions.
K&K Tax Services LLC is here to make sure you're claiming everything you're entitled to — nothing more, nothing less.
