• Pay less tax by claiming all your deductions.tax forms image by Chad McDermott from Fotolia.com
  
  When people consider itemizing their deductions instead of claiming the standard deduction on their federal income tax return, there are many possible questions to answer. Some people are unsure of what they can claim as an itemized deduction or how much of it they can claim. Many times, people neglect to count certain deductions that would help them receive a larger refund. Go through some of these tax-deduction questions for help on your taxes.
  
  

Deductions Differ From Credits

• A deduction reduces the amount of your taxable income. A credit reduces the amount of tax you owe.
  
  

Standard Deduction

• The standard deduction varies a little bit from year to year. Look for an explanation box near the deduction question on the federal tax form where it clearly states the amount of the standard deduction.
  
  

Should I Itemize?

• Use the standard deduction as a guide to whether you should itemize your deductions. Add up all your deductions. If the total is more than the standard deduction, you should complete IRS Form 1040 Schedule A to reduce your adjusted gross income and pay less tax.
  
  

What Can I Deduct?

• Some of the most notable deductions include state and local taxes. In addition, you can deduct cash gifts to charity, as long as you have receipts. You can also deduct donations such as clothing or cars, but you must obtain a receipt from the recipient. If you work at home and use your office space for nothing else but work, you can deduct a portion of the cost of your mortgage, homeowner's insurance and utilities, for example. Student loan and mortgage interest are deductible, as well as a percentage of out-of-pocket medical expenses.
  
  

How Much of Each Can I Claim?

• For some itemized deductions, such as charitable donations and mortgage interest, you can deduct the entire amount. For out-of-pocket medical expenses and a home office, you can claim only a percentage. Check the IRS guidelines on the itemized deduction worksheet (Schedule A) to see what percentage of each item you can deduct, as this may vary from year to year. Consider consulting a tax adviser because there are income thresholds to meet on some deductions and several different forms that must be completed.
  
  

Is Alimony Deductible?

• Alimony paid is deductible under the Adjusted Gross Income section of Form 1040. Keep in mind that this must be strictly an alimony payment, not child support or property-settlement payments. Do not include alimony as an itemized deduction.