I Asked ChatGPT Which Tax Deductions Millennials Commonly Miss — Here’s What It Said
As a millennial, I’m used to having my financial instincts questioned. After all, wasn’t my generation’s love of avocado toast the subject of many pearl-clutching headlines about the global economy? All kidding aside, millennials came of age during an economically precarious time, and we learned a lot. That doesn’t mean we know everything — especially during tax time.
We’re still prone to making certain errors around deductions. To take or not to take? Heck, we don’t know. That’s why I decided to ask ChatGPT about the tax credits and deductions millennials most commonly miss. Though I’ll ultimately take my taxes to an accountant, I wanted a baseline understanding of which tax breaks to ask about. ChatGPT didn’t disappoint.
1. Earned Income Tax Credit (EITC)
One of the most common credits many younger taxpayers overlook, the EITC is a refundable credit for low- to moderate-income workers. “Even without children, many eligible filers don’t claim it,” ChatGPT noted.
Because it’s refundable, qualifying taxpayers can receive money back even if they owe little or no federal income tax.
For You: 7 Ways You're Accidentally Committing Tax Fraud
Learn How: This One Low-Effort Money Move Could Change Your Finances in 2026
2. Saver’s Credit (Retirement Savings Contributions Credit)
Many millennials don’t think about retirement accounts as much as they should. That’s why ChatGPT says they often miss out on the Saver’s Credit.
“If you contribute to a traditional IRA or 401(k) and meet income limits, you may qualify for a tax credit in addition to the tax benefits of contributing to a retirement account,” it said. “Many don’t realize they can both deduct their retirement contribution and potentially qualify for this additional credit.”
Unlike a deduction, this credit directly reduces your tax bill.
3. Student Loan Interest Deduction
Student loans are the bane of many millennials’ existence — for good reason. But some may not realize that up to $2,500 of interest paid on qualified student loans is deductible. This is an above-the-line deduction, meaning you can claim it even if you take the standard deduction, subject to income limits.
Double-check with your accountant or loan servicer to see if your loans qualify. If they do, this deduction is worth pursuing.
4. Home Office and Self-Employment Expenses
With many millennials embracing freelance or gig work — even as a side hustle — they need to treat tracking deductions like a new pastime. ChatGPT said they “often miss deductions like a home office, mileage, internet or phone expenses for business use, software subscriptions and supplies.”
5. Unreimbursed Work Expenses
“While these aren’t deductible for most employees under current law unless you’re self-employed, related business costs (for example, job tools or uniforms) can sometimes still qualify depending on circumstances,” the AI said. While this deduction is less common, it’s still worth checking with both your employer and your accountant.
6. State and Local Tax or Sales Tax Deduction (SALT)
ChatGPT noted that millennials often overlook the fact that if they itemize instead of taking the standard deduction, they can include property, income or sales taxes up to the SALT cap. The federal deduction is currently capped at $10,000 per household per year.
7. Charitable Contributions
Millennials are a big-hearted generation, giving back through charitable donations and volunteer work. For ChatGPT, doing good in the world isn’t its own reward. The AI recommends itemizing small donations, mileage for volunteer work and out-of-pocket charity costs so they can be deductible.
“Many skip these because they’re ‘small,’” ChatGPT said.
Just keep in mind that charitable contributions are deductible only if you itemize, and the organization must be a qualified 501(c)(3) nonprofit.
8. Health Savings Account (HSA) Contributions
“Contributions to an HSA are above-the-line deductions that reduce taxable income directly and are often unused or forgotten,” the AI shared.
To qualify, you must be enrolled in a high-deductible health plan and meet other IRS requirements.
Tips To Avoid Missing Deductions
That’s a lot of deductions — definitely more than I anticipated. So how can a millennial keep track of them? Fortunately, ChatGPT shared a few tips, included verbatim:
Keep good records throughout the year — receipts, mileage logs and contributions count.
Check eligibility for credits and deductions even if you think your earnings are low. Many refundable credits are available regardless of whether you owe tax.
Use tax software or a professional. These tools can uncover deductions you might overlook.
All of these are doable, and I’ll definitely be consulting with an expert.
The Bottom Line
Millennials are used to keeping a close eye on our finances. Now it’s time to apply that same scrutiny to our taxes. ChatGPT offers a helpful list of deductions to watch for — and a solid foundation for a productive conversation with a tax professional.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
More From MoneyLion: