Mortgage Interest

• If you itemize your deductions, you can deduct the amount that you pay in interest on your mortgage. For mortgages dating before Oct. 13, 1987, there is no limit on the interest that is deductible. For mortgages originating after that date, you can deduct the interest on the first $500,000 if you file a single return or the first $1 million if you file a joint return.
  
  

Medical Expenses

• If you have medical expenses that exceed 7.5 percent of your adjusted gross income during any year, you can take a deduction of any excess expenses if you itemize your deductions. Medical expenses can include dental and vision care as well as preventive treatments. You can also deduct the cost of driving to and from medical care. For 2011, the deduction rate was 19 cents per mile.
  
  

Retirement Contributions

• If you make contributions to a traditional individual retirement account (IRA), your contribution may be tax deductible. If you do not have access to an IRA offered through your employer, your contribution is tax deductible regardless of your income. If you do, you still may be able to deduct your contribution if your income is low enough. If you do not know if you are covered, look at your W-2 form. If the employer retirement plan box is checked, then you are covered. For 2011, the contribution limit is $5,000 per person. If you are at least 50 years old, you can contribute an extra $1,000. This is an above-the-line deduction.
  
  

Health Savings Accounts

• Health savings accounts (HSAs) are designed to reward individuals for putting money aside for future medical expenses. In order to start an HSA, you must have a high-deductible health insurance plan. Each year, the contribution limit is adjusted. For 2011, you can contribute up to $3,000 for an individual account or $5,950 for a family account, and the contribution is deductible as an above-the-line deduction. You also do not pay taxes on any earnings on the account as long as they are withdrawn to pay for medical expenses.
  
  

Real Estate Taxes

• Real estate taxes paid to state or local governments can be deducted in two different ways. You can deduct the first $500 of your real estate taxes as an above-the-line deduction. If you file a joint return, the above-the-line deduction doubles to $1,000. If your real estate taxes exceed the above-the-line limit, you can deduct the remainder as an itemized deduction.