An itemized tax deduction is a qualified expense by which a US taxpayer can claim on their Federal tax returns in order to lower their taxable income. Many tax deductions are subject to the 2% limit, which means you can only claim the amount of total expenses that is 2% above your adjusted gross income (AGI). However, there are tax deductions that can be taken without itemizing your return, called above-the-line tax deductions, and can help you save money even if you take the standard deduction.

Some of these deductions are considered temporary, but the majority of above-the-line tax deductions are the same from one year to the next. Many of the below above line tax deductions have income restrictions, or other restrictions you need to know. When in doubt, reach out to a tax professional or read IRS publication 17.

The current economy is changing the makeup of our households. With unemployment high, many are finding that they are supporting relatives and non-relatives alike by allowing them houseroom.

While you might be allowing someone in need of help to live with you out of the goodness of your heart, it is worth considering that your roommate just might be a dependent – and tax-deductible.

2011 was an eventful year, filled with a few natural disasters such as earthquakes, hurricanes, tornados and more. It's never fun to lose money due to a disaster, or to theft. However, you can mitigate some of the pain with a tax deduction. Your tax deduction can reduce your taxable income - and the amount of tax you owe.

However, you need to make sure that you follow the proper procedure.

As you complete your tax planning for this year (and continue to plan for the future), it is important to take the time to consider the many advantages associated with utilizing a Health Savings Account (HSA). If you are looking for additional ways to lower your taxable income through tax-advantaged savings account, an HSA might be just the thing you need.

Here is some important information that you will need to know in order to determine whether an HSA is a good option for you:

Stock options are a popular way to compensate employees or retain employees in lieu of cash.  A stock option is a benefit given to an employee whereby the employee can purchase certain number of shares of their company's stock in a certain time frame at an established price. Stock options often cost a business little to issue, but are a great benefit for an employee if the company is successful and the stock's value increases. In fact, the equity gained from owning stock options can be far more valuable to the employee than what the equivalent cash would have been. However, there are tax implications involved, which vary depending on whether the company issues non-qualified or qualified stock options.

Here are the differences between non-qualified or qualified stock options, as well as the tax consequences of each:

If you are currently paying back student loans do you know that you may qualify for an "above the line" tax deduction on the interest that you pay? An "above the line" tax deduction means that you can take the deduction whether you itemize or not. While there are requirements that must be satisfied in order to qualify, you could more than likely be getting a tax break.

While many individuals who are paying back student loans will qualify to write off interest paid as a tax deduction, before doing so you will want to make sure that you qualify.

Income taxes are a huge expense to many Americans, so looking for ways to reduce taxes can make a difference.

One of the biggest tax breaks that you get is being allowed to take either a pre-determined amount off your taxable income, based on your filing status and age, or to use Schedule A to deduct the amount you spent on many common expenses from your income. These two options are your “standard” and “itemized” deductions.

As in previous years, the 2011 tax filing season begins in January for most individuals but about 9 million taxpayers will have to wait longer to file.

Making legitimate tax deductions can render small businesses more profitable. By paying attention to IRS rules on deductible expenses, such benefits as combining a business trip and family vacation can become a legitimate business expense.

Consider and review the following top business tax deductions:

Vehicle Expenses

If the business has its own vehicle or if a personal car is used for business, deductions for the vehicle can be made. Some of the costs of keeping the vehicle on the road for business purposes can be deducted. There are two methods of determining expenses for a business vehicle: