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Beyond the standard deduction: How to reach the itemizing threshold

By Dow Jones Newswires

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Here are a few areas that could push you past the amount of the standard deduction so you can itemize:

Unreimbursed medical and dental expenses, deductible if they exceed 7.5 percent of your adjusted gross income. Often overlooked: your parents' nursing-home costs, if you pay them. "There are deductions that people are unaware of," says Jeffrey Kelson, a partner at accounting firm BDO Seidman. "Especially with the aging population, you might be able to exceed the 7.5 percent."

Add up what you pay for items not fully covered by insurance, such as your child's braces, your eyeglasses and mental-health counseling. If you have an expensive procedure scheduled for January, like a root canal, move it to December.

Sales tax is deductible on federal income-tax returns for the first time since 1986 — a boon to taxpayers in Washington state, which doesn't have a state income tax (such a tax is also deductible on federal returns). The IRS is expected to publish tables to help filers determine how much they've paid in sales tax for 2004.

Other miscellaneous deductions, in excess of 2 percent of adjusted gross income. Looking for work? You can deduct job-hunting fees, even if you didn't get the job. Tax advice and preparation fees also are deductible.

Copyright © 2004 The Seattle Times Company

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