1. Money  Discuss in my forum  Itemized Deductions  Lower Your
Taxes by Claiming Tax Deductions   Itemized Deductions  (Form
1040 Line 40, and Schedule A)  Like the various adjustments to
income (lines 23 to 36), itemized deductions provide a way for
you to convert your otherwise taxable income into nontaxable
income provided that you spend your money on various tax-
privileged items. You can deduct from taxable income any money
you spend on health care, state and local taxes, mortgage
interest, charitable donations, and tax preparation fees.
Covering the various ins-and-outs of itemizing can get rather
detailed, but here's the big picture.  First, get out a Schedule
A (PDF). This is the form where you tally up your various tax
deductions item by item. What we want to look at is all the
categories of things you can spend your money on and receive a
deduction on your tax return.  You can claim an itemized
deduction for:  More detailed instructions for each type of
deduction can be found in the Instructions for