Itemized deductions are certain expenses that you can use to lower your taxes. For 1999, the categories of itemized deductions are:

1. Medical and dental expenses,
2. State and local taxes,
3. Home mortgage and investment interest,
4. Charitable contributions,
5. Casualty and theft losses,
6. Job expenses; and
7. Miscellaneous deductions.

Generally, you must decide whether to itemize or to use the standard deduction. It is usually to your benefit to itemize if your allowable itemized deductions are more than your standard deduction. Some taxpayers should itemize because they do not qualify for the standard deduction. The standard deduction varies according to your filing status, age, whether you are blind, and whether you can be claimed as a dependent on another taxpayer's return. The basic standard deductions for 1999 are as follows:

• Single - $4,300
• Head of Household - $6,350
• Married, filing a joint return - $7,200
• Married, filing a separate return - $3,600
• Qualifying Widow or Widower with dependent child - $7,200

An additional amount will be allowed if you or your spouse became age 65 or older by January 1, 2000, or is blind. If you can be claimed as a dependent on another person's return, your standard deduction may be limited. For further information on the additional standard deduction for the blind or elderly, and the limit for dependents, select Topic 551.

When a married couple files separate returns and one spouse can and does itemize deductions, the other spouse may not claim the standard deduction and should also itemize.

Some taxpayers are not eligible for the standard deduction. They include nonresident aliens, dual-status aliens, and individuals who file returns for periods of less than 12 months. For additional information see Publication 501, Standard Deduction, and Filing Information.

You may be subject to a limit on some of your itemized deductions. For 1999, this limit applies if your adjusted gross income is more than $126,600, or $63,300 if you are married filing separately. This limit applies to all itemized deductions except medical and dental expenses, casualty and theft losses, gambling losses, and investment interest.

For more information on itemized deductions, see Form 1040 instructions for Schedule A, or Publication 17, Your Federal Income Tax. Specialized publications such as, Publication 554, Older Americans' Tax Guide, Standard Deduction and Publication 3, Armed Forces' Tax Guide, Itemized Deductions provide relevant information. Also check out Frequently Asked Questions, Itemized Deductions and the interactive Tax Trails on Standard Deductions. Publications and forms may be downloaded from this site or ordered by calling 1-800-829-3676.

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