• The federal 1040 form allows more deductions and write-offs than the 1040EZ.tax forms image by Chad McDermott from Fotolia.com
  
  Paying federal income taxes each year can be a frustrating and expensive process. The actual amount of money you owe depends on many factors, including your income and any deductions you're allowed under the tax code. Some deductions can significantly reduce your total tax burden, but others can be difficult to prove or support if you fall under scrutiny.
  
  

Education Expenses

• Most students with education loans can write off a portion of their education expenses. Forms like the federal 1040 tax return include lines for education deductions, which includes money paid as interest on a student loan. Students with income above a certain threshold may also be able to deduct higher education expenses, including transportation to and from school, and supplies such as text books or even a computer.
  
  

Retirement Contributions

• Contributions to a retirement savings program are generally tax-deductible. The government allows workers to write off these payments in order to encourage saving for retirement. Records for an employer-supported retirement plan make it easy to track the amount an individual contributes on an annual basis.
  
  

Capital Losses

• While capital gains, which represent profit from sale of stock or other interests, are taxes as income, capital losses are a write-off. This occurs when a taxpayer sells stock or investment property for less than the cost basis, which represents the amount initially paid. Capital losses can help turn a long-term loss, or even a gain, in the case of large dividend income or stock splits, into tax savings.
  
  

Work Expenses

• All workers are eligible to write off qualified employment expenses. This includes a portion of rent or mortgage payments, utility bills and supplies for a home office. Writing off home office expenses is only available to taxpayers who run a small business from home, and it may complicate the sale of a home, as some of the sale price will qualify as a profit for the business.
  
  Taxpayers may also write off a computer or cell phone. For devices that only serve a professional purpose, the entire amount should be tax deductible. Writing off shared devices may require the taxpayer to submit records that show what percentage of the device's use is dedicated to work rather than personal use.
  
  

Healthcare Costs

• Some medical costs may become tax deductible, once they exceed 7.5 percent of a taxpayer's adjusted gross income. This includes long-term health insurance premiums. Self-employed taxpayers may deduct the full cost of all health insurance premiums, regardless of healthcare costs or income level.
  
  

Energy Savings

• The federal government allows taxpayers to write off certain purchases of energy saving devices. This includes tax credits for hybrid-electric vehicles, along with deductions for purchasing energy saving appliances or devices, such as refrigerators, microwaves and home windows.