Itemized deductions are captured on Schedule A as an alternative to taking the standard allowable deduction. To determine which is more favorable for your situation, it is often best to calculate your return both ways.

Generally, if you own your own home you may itemize deductions. To help you gather and retain the correct records, a checklist is provided here for your use. While the list is not all inclusive, it should give you a good starting point.

Medical & Dental Costs
Medical and Dental expenses are generally deductible to the extent they exceed 7.5% of your income. Some of the more common expenses:

• adoption
• birth control pills (prescribed)
• doctor/dentist fees
• drug/alcohol treatment
• guide dog costs
• handicap access devices for disabled
• hospital fees
• insurance premiums
• prescriptions
• laser eye surgery
• lead based paint removal cost
• life-care fees for medical treatment
• longterm care ins prem.
• meals/lodging related to hospital stays
• medical devices
• operations
• organ donation
• physician diet/health programs
• psychiatric care
• school and/or home for disabled
• smoking cessation program cost
• special life items:
  (glasses, limbs, dentures, wheelchairs, hearing aids, contacts, etc.)
• transportation (medical related)
• weight loss programs cost

Taxes
The following taxes are generally 100% deductible.state/local taxes

• state/local taxes
• property taxes
• payments to mandatory state funds
• foreign income taxes
• real estate taxes
• value based auto license fee
• general state/local sales tax*

* Starting in 2004 you may now deduct either general state/local sales tax or state/local income tax.