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When it comes to deductions and tax returns, do you know all your options? Many people use the 1040EZ or 1040 forms, like you, they don’t know all the options out there. This article will highlight some facts concerning both types of deductions.

The 1040 form is for standard deduction that depends on your tax filing status. If you’re married, filing jointly, a qualified widow or house of household, then you get the highest deductions. If your filing as a single or married, filing separately you will get less deductions. The deduction amount is determined by the IRS, and will only change if the IRS deems fit.

But other than the standard deduction, there are other options, this is called itemized deduction. You don’t have to be wealthy to itemize, most people don’t know what it is, so they don’t know that they can do it. But itemization can be done by anyone who files taxes, especially if you feel that the itemized deductions may be more than the standard deductions offered by the IRS.

Before you start adding up expenses, let’s first talk about what itemizations are all about. Itemizing can lower your taxable income by adding up expenses that are deemed deductible by IRS. These expenses can be shaved off your income to lower the amount that is taxable.

For example if you work from home, say you have a room in your house you use as a home office. All the equipment in this room are solely for business purposes and you use the phone for business uses also, then all the costs towards this home office can be deducted from under home office expenses. Other than deducting the usual, equipment, furniture, supplies etc, you can also deduct a portion of the mortgage / rent, electricity, gas and telephone bills.

There are other details regarding the home office expense, you can find out more from the IRS official website. Another type of deduction is uniforms purchased for your job, including the cost of cleaning them. Charitable contribution in forms of money and goods can also be itemized. There is a wealth of things that you can itemize for deduction.

However before you start doing the sum, there are threshold limits for some categories that must be reached before you can make a deduction. So do your research before jumping ahead of things.

If this is your first time, why not try both standard deduction and itemized deduction to see which is best for you. Read the requirements for each category carefully so you won’t make a mistake. It would be even better if you have a tax professional or use a tax software to double check your work before you file.