Standard Deductions

• Taxpayers who prefer the simplest option, or who have few deductions to list, can take the standard deduction that the IRS provides. The amount of the standard deduction you qualify for depends on your filing status, such as married filing jointly or single. If you have children you can use your family size to claim an exemption elsewhere on your taxes, but not a larger standard deduction. The standard deduction amounts increase each year to keep pace with inflation. Taxpayers who have many deductions can save more by skipping the standard deduction and itemizing their deductions instead. Those who claim the standard deduction don't qualify for any other deductions in the given year.
  
  

Medical Deductions

• Anyone who sets aside money from a paycheck to pay for a health plan or fund a health savings account qualifies for a medical deduction. Taxpayers can also deduct the money they spend on private health insurance, as well as co-pays or full payments for most prescriptions, doctor visits, hospital services and dental treatment. Medical deductions also include the cost of transportation and admission to medical seminars and conferences that the taxpayer may attend to learn about a disease from which they suffer.
  
  

Business Expenses

• Most personal expenses relating to your job qualify for a tax deduction. This includes the money you spend on uniforms and the cost of a business-related phone and office supplies that you purchase personally. Business deductions also include any travel expenses that you incur for your job but don't receive reimbursement for from your employer. These can include plane fares, taxi fares, the cost of meals, hotel costs and the cost of business phone calls or dry cleaning related to your out-of-town work. Extravagant and personal expenses on a business trip do not qualify for tax deductions.
  
  

Education Expenses

• Many expenses related to higher education also qualify for tax deductions. College tuition and course fees qualify only when you pay them, so tuition you pay with a loan does not qualify. However, students who pay off their loans can claim the interest they pay as a deduction. Other higher education deductions include the money you spend on textbooks, research and typist costs, transportation to academic events out of town and basic classroom supplies.