Breaks are available - even if you're not itemizing

Even though the April 15 tax filing deadline may be fast approaching, a few moments to go over deductions and tax credits you may be neglecting could be time well spent.

That's especially true if you're among the almost two-thirds of taxpayers who forgo the rigors of itemizing deductions on their federal return and instead take the easier-to-handle standard deduction.

Congress in recent years has been loading the tax code with additional breaks that are available even to nonitemizers, who accountants say may give up too easily on taking deductions in addition to the standard amount.

"It's a kind of double dipping," says Roberton Williams, an analyst at the Tax Policy Center, a Washington think tank. In theory, the standard deduction - for example, $10,900 in 2008 for a couple filing jointly, $5,450 for a single, and $13,000 for a couple 65 or older - should cover the typical deductions to which most people are entitled, he says. But now, "you can get the benefit of the standard deduction and then the benefit of these other ones as well."

It's increasingly important for nonitemizers to keep their antennas up, says Art Ford, a certified public accountant with Sullivan Bille in Tewksbury.

Among the tax reducers, he notes, are deductions, which lower your taxable income, and credits, which are subtracted from the tax you owe.

Here are some of the extras to keep in mind for your 2008 return. They can be taken as a supplement to your standard deduction or, if you itemize, as an additional benefit. Property tax: Nonitemizers, in a new break for 2008, may now add up to $500 in property tax to their overall standard deduction; couples filing jointly can add $1,000. Classroom supplies: Teachers in K-12 can deduct up to $250 in out-of-pocket spending for classroom supplies. This break had expired, but in a last-minute move, it was reinstated by Congress. Student loans: Interest paid on a student loan that was used for tuition and other expenses at a college or vocational school is generally deductible up to $2,500 a year. But: The deduction begins to phase out when income hits $55,000 on a single return or $115,000 on a joint one, and even if both spouses pay interest on loans their combined deduction can't top $2,500.

College bills: The financial drain of tuition can be eased in part by the Hope and Lifetime Learning credits and a separate nonitemizer deduction whose income limits may work out better for some higher-income people. You may have to do what-if scenarios to figure which break to choose.

Moving bills: Unreimbursed travel expenses and the cost of a mover are deductible when you change locales because of a job change, or even when taking your first job.

Self employment tax: Self-employed people pay both the employer and employee shares of Social Security tax, but they can claim half of what they pay as a tax deduction.

Early CD withdrawal: People hit with a penalty for cashing in a certificate of deposit before maturity must report the full amount of interest initially credited to their account, but can deduct the amount they forfeited as a penalty to the savings institution.

Alimony: Child support payments are not deductible, but alimony can be subtracted by the payer as a downward adjustment to taxable income. On the receiving end: Alimony is taxable, but child support isn't.

Dependent care: The cost of day care for a child or a disabled spouse so that you are free to hold a job may be recovered in part through a child and dependent care tax credit. A middle-income family with two children, for example, might save $1,200 in tax.

Adoption: The expense of adopting a child can be taken as a tax credit to a maximum of $11,650 for 2008.

Home buyers: New home buyers in 2009 may qualify for a tax credit of $8,000, but in a special twist, they can speed the payoff by claiming the credit for this year's purchase on 2008's return - even if that means amending a 2008 return that has already been filed. A credit claimed on 2008 returns for qualifying homes bought last year is $7,500, but unlike the new one for 2009, this credit must eventually be repaid.

Health accounts: Employees who contribute to a Health Savings Account to cover medical expenses can deduct what they contribute even if they don't otherwise qualify for medical deductions.

Remember: Income caps, benefit limits, and other rules may restrict or bar a break. "Just because you've heard that a deduction exists does not mean it's available to you," cautions Bob Scharin, a senior tax analyst at the tax and accounting arm of Thomson Reuters.

That means you may have to read the fine print in IRS tax form instructions and plow through worksheets to determine eligibility and the amount allowed.

Need extra time?

"People who wait until the last minute tend to make more mistakes. So rather than rushing through your return, it may be to your benefit to get an extension," suggests IRS spokeswoman Peggy Riley.

A six-month extension is generally yours for the asking - you can check form 4868 or the IRS website (www.irs.gov) for help.

One hitch: The extension avoids a possible penalty for filing late; you still face interest and a possible penalty on tax not paid by April 15.

Massachusetts also allows a six-month extension for the state return.

Already filed but now discovered a deduction or credit you failed to take? You can get a second time at bat with an amended return on form 1040X. You generally have three years to do that.