There's no point in itemizing if your total deductions do not exceed the standard deduction that you can claim as a non-itemizer. For 2010, the standard deduction is $5,700 for singles and $11,400 for marrieds filing a joint return. (If you're over age 65 or if you're blind, the IRS lets you claim a larger amount.)

So, if you've paid off your mortgage or you're a renter, you may not be able to rack up enough deductions to make itemizing the right way to go. Nevertheless, there are four deductions available for those who do not itemize. They are often overlooked, especially by individuals doing their own return.

They are, in alphabetical order:

•(1)     Alimony. You can claim alimony in the year in which it is paid. However, you must fill out a 1040 and provide your ex-spouse's Social Security form. Note: Child support is not deductible.

•(2)     Early withdrawal penalties. If you cashed in a certificate of deposit (CD) prior to maturity, most likely your bank required you to give up several months of interest. That's the bad news. The good news is you can deduct this penalty amount against your gross income.

Get out the 1099-INT form you received from your financial institution. The amount you can deduct appears in Box #2.

Caution: Unfortunately, this tax break does not include withdrawals made from retirement accounts. So if you took out money from your IRA and you are under age 59½, you'll be hit with a 10% penalty plus income taxes.

•(3)     Moving expenses. These are deductible provided your 

new workplace is at least 50 miles from where you were working previously. For example, let's say you previously commuted 20 miles to work. To deduct moving expenses, your new job must be at least 70 miles from your previous workplace.

If you meet the IRS' so-called "distance rule," then you can deduct: travel expenses involved in moving you and your family to your new home, the cost of shipping your car and/or your pet, packing costs and the cost of transporting your household items.

•(4)     Student loan interest. If you borrowed money for college during 2010, you can deduct up to $2,500 in

interest. This deduction applies to both federal and private student loans -- provided the loan was a qualified loan for higher education.

There are limits, however. Your income cannot be above a certain amount. The amounts are phased out for single filers with adjusted gross income (AGI) between $60,000 and $75,000. And, for marrieds filing jointly, the phaseout is between $120,000 and $150,000.

$TIP: If you paid $600 or more in interest on qualified student loans during 2010, you should have received a Form1098-E from your lender.

For Further Information: http://www.irs.gov./

Stay tuned: Next week, Deductions For Itemizers