There are two types of deduction an ordinary individual can take on their income tax form. Some are on page one of form 1040. These are considered adjustments to income. These deductions are available to everyone.

The other deductions are on Schedule A. The information on Schedule A is needed if you are itemizing your deductions instead of using the standard deduction.

If you are thinking about itemizing deductions on your tax return, remember all deductions are made for the year the amount was paid or given. It does not matter when your received the bill or when the recipient received the funds.

If you had a large casualty or loss last year, figure the amount of this deduction first. Fill out form 4684 and see if you qualify for a deduction. Casualty losses include destruction of property by fire, accident and other situations. The incidents must be sudden and unexpected. You must have reported any theft to the police. The website http://taxguide.completetax.co m has easy instructions on how to use this form.

Next consider home ownership status. People who are paying off the mortgage on their primary home usually should itemize their deductions. The actual house payment is not deductible but the interest is. Real estate taxes are also deductible. For a single person. these two amounts alone could equal more than $5150. $5150 is the standard deduction which single people who do not itemize will take.

Compute the amount of deductions you can take based on your mortgage, then move up schedule A to line 5. This is state and local income tax. These can be found on your W-2's. The amount of state and local income taxes you paid is deductible. But if you are using Schedule A, any refund you received from state and local income taxes must be reported as income. This amount goes on line 10 of your 1040 form.

If you bought a home during the year, the cost of this purchase is deducted. This includes all expenses, i.e. inspections, and realtors.

Instead of state and local income taxes, you can choose to deduct sales tax you paid during the year. You can save your receipts all year or use the table provided by the IRS. This will benefit people who live in states with no income tax. It will also benefit people who made major purchases such as cars during the year.

Property taxes are taxes that are charged on certain personal property by the state. These would be taxes on items such as cars, motorcycles or boats. In order to be deductible, they must be charged yearly,

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