Standard Deduction

• The standard deduction is an amount set annually by the federal government for each filing status that is an approximation of the itemized deductions an average taxpayer could take. For 2009, singles and those who are married and file separately who take the standard deduction deduct $5,700, heads of households deduct $8,350 and married couples filing jointly deduct $11,400.
  
  

Mortgage Interest

• The payment of interest on a mortgage is an itemized deduction. Certain mortgage fees, such as discount points, are also deductible.
  
  

Charitable Donations

• Donations to charity are an itemized deduction. The maximum deduction for donations to charity depends on your adjusted gross income (AGI) and the type of donation. Cash donations are restricted to 50 percent of your AGI, property is restricted to 30 percent and capital gains are restricted to 20 percent.
  
  

Educator Expenses

• If you work at least 900 hours as an educator, you can deduct up to $250 for expenses incurred from teaching. This is an above-the-line deduction.
  
  

Traditional IRA Contributions

• If you contribute to a traditional individual retirement account, you may take an above-the-line deduction for your contributions. The contribution limit for 2009 is $5,000 for individuals under 50 and $6,000 for those older than 50.