Whether you’re in Charlotte, Asheville, or anywhere in between, most North Carolina residents overpay on taxes each year—simply because they don’t know what deductions they’re entitled to.

At Polaris Tax & Accounting, we work with individual taxpayers across the state to optimize returns, reduce risk, and uncover savings that traditional tax software and rushed CPAs often miss.

Here are the most frequently missed deductions you should be looking out for in 2025.

✅ 1. NC Standard Deduction vs. Itemizing – Are You Doing the Math?

North Carolina conforms closely to the federal standard deduction—but depending on your situation (especially with mortgage interest, property taxes, or charitable giving), itemizing may yield a better outcome at the federal level.

Tip: Always run both scenarios—even if it seems like standard is the default.

📌 Learn more about strategic tax filing in NC »

✅ 2. Retirement Contributions (Even in April)

Many North Carolina residents don’t realize that you can still contribute to a Traditional IRA or HSA up until the tax deadline—and potentially reduce your state and federal tax bill.

  • Traditional IRA contributions can be deductible (depending on income).

  • HSAs offer a triple tax benefit—and are state deductible in NC.

✅ 3. Education-Related Deductions

While NC doesn’t offer a 529 tax deduction at the state level, the federal Lifetime Learning Credit and Student Loan Interest Deduction still apply.

If you’re taking night classes, supporting a child in college, or repaying federal loans—don’t overlook these.

✅ 4. Charitable Contributions—But Only With Documentation

North Carolina follows federal rules on charitable deductions, which means they only count if you itemize and if they’re well-documented.

Common mistakes:

  • Donating cash without a receipt

  • Overstating the value of donated goods

  • Forgetting payroll deduction charity receipts

✅ 5. Self-Employment & Side Hustle Deductions

If you have freelance income, consulting work, or sell products on the side, you may be missing:

  • Home office expenses

  • Equipment and software

  • Marketing and advertising costs

  • Business mileage

Even if you didn’t form an LLC, your side gig may be eligible for Schedule C deductions.

✅ 6. Estimated Tax Payments for 2025 – Get Ahead

If you owed last year, you’re not alone—but repeating that mistake in 2025 could trigger underpayment penalties.

We help clients:

  • Calculate what they’ll owe ahead of time

  • Avoid IRS penalties

  • Adjust NC state withholding or estimated payments

📌 See how tax projections protect your refund »

✅ 7. New NC Income Tax Rate Changes (2025 and Beyond)

North Carolina’s individual income tax rate dropped from 4.5% to 4.25% in 2025, with a further drop to 3.99% expected by 2026. While this may sound like a simple win, timing income and planning ahead could create even more tax savings.

📌 Get the breakdown on NC’s income tax cuts »

Let’s Optimize Your Tax Picture

If you’re filing solo, relying on TurboTax, or just hoping your refund is accurate, you’re probably missing thousands in savings or inviting a letter from the IRS.

At Polaris Tax & Accounting, we help individuals across North Carolina build a tax plan—not just file a return.

📅 Schedule a tax planning consultation now

We’ll uncover missed deductions, spot risks, and help you plan for next year—so you never leave money on the table again.