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  A deduction on your federal income-tax return subtracts a certain amount from your taxable income. Lowering your taxable income decreases the amount of federal income tax you pay. The Internal Revenue Service (IRS) offers a standard deduction, which provides some tax relief; but if the amount of your eligible deductions is greater than the standard deduction, listing your deductible expenses on Form 1040 Schedule A is more beneficial for you.
  
  

Medical and Dental

• The money you spend on certain medical and dental care is eligible for deduction if the expense was for dependents, a spouse or yourself. However, the expense must be for medical care that prevents or cures an illness or a defect. For example, contact lenses, eyeglasses, weight loss programs, long-term care and nursing services and treatment for alcohol and drug addiction. In addition, the cost of prescription drugs, except insulin, is also a qualified expense.
  
  

Mortgage Points

• Mortgage points are prepaid interest payments you might pay to a mortgage lender during the closing process. A point is the same percentage point of the amount of your home loan. According to the IRS, the amount of points you paid to your lender is typically fully deductible.
  
  

Taxes

• The IRS currently offers a deduction for certain taxes unrelated to running a business. These taxes include the following: property taxes, certain vehicle taxes, state taxes, local sales taxes, real estate taxes and state, local and foreign income-tax payments. These taxes are all deductible if the taxes were imposed and paid during the tax year.
  
  

Home Office

• The IRS allows you to deduct some expenses for using part of your home for business. The expense must meet at least one of the following criteria to qualify as a deduction for business use of your home:
  
  1. Your home office is your main place of business.
  
  2. You normally meet with your clients in your home as part of your business.
  
  3. You use an unattached part of your house to conduct your business.
  
  The IRS requires you to figure the amount of space in your home you use for business purposes and apply that ratio to recover some of the cost of real estate taxes, mortgage interest, utilities, rent, maintenance, repairs and depreciation.
  
  

Education

• Costs to cover the expense of college and work-related education are deductible under certain conditions. According to the IRS, college education deductions are available for the cost of tuition, books, supplies and transportation. If you are employed and pursue education, the IRS requires the education program be related to your job, help you improve your performance or be a legal or employment requirement.