Smarter taxpayers develop their deductions strategy early, getting the most out of the tax breaks and avoiding filing-deadline panic.

Figuring out which deductions can help you is important because they aren't dollar-for-dollar tax-reduction tools. They can only cut your taxes on a limited basis by reducing your taxable income. Less income equals less tax.

That means every bit that reduces your taxable income is critical to cutting your final payment to Uncle Sam -- or getting a bigger refund. If you're going to add up your deductible expenses, add them all up on your Schedule A, especially since many deductions require you to reach a certain level before you can use them.

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Tax-savvy filers know that some useful deductions get overlooked in the last-minute rush to find ways to cut a tax bill. So now, with plenty of time to spare, here are some itemized deductions you may have forgotten about.

Many medical costs to consider

There is never anything good about being sick, but don't add to your ailments by overlooking medical costs that you can deduct.

Since total medical expenditures must be at least 7.5 percent of adjusted gross income, many taxpayers don't even bother with this one. But there are ways the Internal Revenue Service says you can get this deduction up to that ceiling.

• Count travel expenses to and from medical treatments. The IRS's Web site posts current mileage rates.
• If you made insurance payments from already-taxed income, add it in here. This includes the cost of long-term care insurance, up to certain limits based on your age.
• What about things your insurance didn't cover, but you needed anyway? This is where you can recoup some of their costs. This includes an extra pair of eyeglasses or set of contact lenses, false teeth, hearing aids and artificial limbs.
• The doctor told you to get that humidifier to help relieve your chronic breathing problems. That means the device -- and additional electricity costs to operate it -- could be at least partially deductible.
• The IRS also has deemed that costs for programs to help you kick the smoking habit are medically deductible, as are weight-loss programs undertaken at a physician's direction to treat an existing ailment such as heart disease.

Special medical needs

Do you have special needs? The medical-deductions section of your tax form is also where you account for the cost of a wheelchair, crutches and equipment that enables a deaf person to use the telephone or that provides television closed-captioning.

If you purchase a hearing or Seeing Eye guide dog, Fido's cost is deductible, too.

Even some home remodeling might be just the prescription for a tax break, as long as you follow your doctor's orders and the IRS's rules. If you need, for example, to add a chair lift to get up and down the stairs, this generally is considered a legitimate expense. Other deductible projects that make a house more accessible for a handicapped resident or individual with chronic medical problems are:

• Adding ramps
• Widening doors and hallways
• Lowering counters and cabinets
• Adjusting electrical outlets and fixtures
• Installing railings, support bars and other bathroom modifications
• Changing hardware on doors
• Grading exterior landscape to ease access to the house

A word of warning, however: Elevators generally aren't deductible. The IRS considers this a structural change that could increase the value of your house and therefore doesn't allow it as a medical deduction.

Yes, there are some good taxes

Some taxes really do come in handy.

If you live in a state with an income tax, you already know the value of deducting those taxes from your federal ones. But don't limit yourself here.

You also can deduct personal property taxes, intangible taxes on investments, real estate taxes, and in some cases the disability taxes you pay.

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Go a bit further down the governmental tax chain, too. Did you pay city or county income or property taxes? Then throw them in here.

This means those taxes you paid directly, not just the ones withheld from your paycheck and that show up on your W-2.

For 2005 returns, taxpayers who itemize still get the chance to deduct state and local sales taxes they paid. If you live in a state that collects both sales and income taxes, you'll have to choose which tax amount you want to deduct on your Schedule A.

Residents of states that don't collect income tax but do levy sales taxes will find this is a great break. But it's worth checking out even if you do pay state income taxes. If your income tax is low, and you made a lot of expensive purchases during the year, the sales tax deduction might cut your IRS bill more than your income tax write-off.

An interest(ing) deduction

Every homeowner makes sure he gets that statement from the mortgage holder so that chunk of loan interest can be deducted.

But don't forget that second home or a vacation place with a mortgage. If it meets IRS guidelines for personal use during the tax year, then be sure to include interest paid on that property's loan on your Schedule A, too.

If it's a new loan, make sure you add in here any points -- money you paid the lender to get the loan. Even if the seller paid the points, you, the buyer, can write them offer on your return. If you don't get a statement from your bank with information on points you paid, pull out your closing paperwork and you'll find it listed there.

Investments can help you out here, too. Did you borrow money to buy that hot stock? Interest on that loan is deductible.

Countless charitable contributions

You got the receipt from the Red Cross for your cash donation. You have that one from the Salvation Army for that extra couch you got tired of seeing in the garage.

You're done here, right? Wrong.

There are many noncash contributions that taxpayers forget to add up.

The IRS allows you to deduct the miles you drove your personal car to the soup kitchen where you volunteer each weekend. Again, check the agency's Web site for the current per-mile rate for travel done to help out a charitable organization.

Are you a scout leader? Then the cost of your uniform and its upkeep -- dry cleaning, tailoring, repair -- is deductible.

Letting the IRS share your losses

Most taxpayers think they can deduct casualty losses only if they are victims of a catastrophic natural disaster.

But you don't have to suffer through a fire, flood, hurricane, tornado or earthquake to claim a casualty deduction. Losses from theft and vandalism are eligible losses, as are any damages from an automobile accident as long as it wasn't the result of driver negligence.

The IRS does limit, however, just how much of these losses you can use to reduce your taxable income. Any amount here must be reduced by $100, and then it must exceed 10 percent of your adjusted gross income.

Victims of hurricanes Katrina, Rita and Wilma do get some leeway here this filing season, thanks to tax-law changes that temporarily remove these limits for affected taxpayers.

Myriad miscellaneous expenses

This is a fun category, if you've got the patience -- and receipts -- to back up your spending. And you'll need the receipts because this category, like the medical one, is limited. The total of your miscellaneous deductions must be more than 2 percent of your adjusted gross income.

If you looked for a new job this year, be sure to count your job-hunting expenses here. Just remember that your job search has to be in the same field in which you're already employed. Any subscriptions to work-related publications also can be taken here, as can fees you paid for membership in a professional organization, as long as you weren't reimbursed by your employer.

Do you have a hobby that nets you a bit of extra spending money throughout the year? Any costs you had toward that hobby can be toted up as a miscellaneous expense. But you can't deduct more than you made on the hobby.

Maybe your hobby is a bit more glitzy -- trips to Las Vegas or Atlantic City, N.J., for a little recreational gaming. If it wasn't a good year at the roulette wheel, the IRS lets you deduct your losses. These losses aren't limited by the 2-percent cap, but you can't deduct in losses more than you won.

And finally, if this whole deduction process just got too taxing for you and you paid an accountant to figure it out for you, here's a final itemizing gift from the IRS. Fees paid to professional tax preparers are deductible, too.

While economists debate whether the country is in a recession, consumers are being buffeted by skyrocketing prices, growing debt, layoffs, the subprime lending squeeze and a stock market roller coaster.

While you may not be able to control the price of oil or the prime rate, there are some simple things you can do to shore up your finances, safeguard your future and ride out whatever the economy throws at you.

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Here's a list of ideas that hopefully will help you get through any hard times, plus tips if the hard times have already hit your household.

Dealing with hard times

1. Eliminate the nonessentials
2. Start a go-to fund for emergencies
3. Consider cutting back (rather than cutting out) for some expenses
4. Safeguard your current job
5. Be on the lookout for your next job
6. Keep your debt load light
7. Barring a complete personal financial meltdown, continue funding your retirement
8. Swap extraneous spending for smart long-term moves
9. Investigate refinancing
10. Re-examine your insurance
11. Adjust your withholding allowance
12. Reward yourself
13. Ask for an extension on your car loan
14. Get an extension on the mortgage
15. Talk to a mortgage counselor

1. Eliminate the nonessentials. One way to avoid putting spending on automatic pilot: Write down everything you buy and the price. Then go through the list and "be brutal," says Nancy Register, associate director for the Consumer Federation of America.

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Ric Edelman, Certified Financial Planner and author of "The Truth About Money," agrees.

"You need to make sure you're not spending any money that doesn't absolutely, positively need to be spent," he says. "A lot of people are spending money frivolously on wants they consider needs."

If you have kids, "It's a great time to explain wants versus needs," says Linda Sherry, director of national priorities for Consumer Action.

2. Start a go-to fund for emergencies. The average family will face up to $2,000 a year in unexpected bills, says Register. For families already stretching to pay the bills, those surprises can trigger long-term financial problems. While you can't plan what or when, you can have money set aside just in case.

"You need to really boost your cash reserves," says Edelman.

His recommendation? Aim for one year's living expenses in an assortment of liquid vehicles, like a bank account, money market account and short-term CDs.

One way to kick-start that fund: Shave off 10 percent of your take-home pay every time you get a check, says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling.

Keep it liquid and make saving automatic. Look for a money market account that pays the highest rate you can find, says Register. Want to make sure you're consistent? Arrange to have the money deposited electronically.

Deposit any "extra" money you receive, like that birthday check, bonus, tax refund or raise.

3. Consider cutting back (rather than cutting out) some expenses. Depending on your current situation and concerns, it might make more sense to just scale back.

"It's much more effective if people cut back rather than cut out," says Cunningham, "because it's the change in behavior that's so tough."

Examine services you're paying for and not fully using, like the cell phone plan with unlimited texting or the premium cable package. Are there less expensive options that would make you just as happy? Would bundling (buying several services from the same provider) save money?

Make it a family discussion, says Cunningham. "That way, everyone is pulling in the same direction."

4. Safeguard your current job. Remain engaged and enthusiastic, keep a high profile and network, network, network.

Make yourself visible "as someone who wants to be part of the team," says Martin Yate, executive employment coach and author of "Knock 'Em Dead 2008: The Ultimate Job Search Guide."

Three keys to making yourself invaluable: First, analyze how much you save or produce for the company. And don't be afraid to let higher-ups know what a key role you're playing in company success.

Second, stay current with the latest developments, continuing education and technology in your field.

Third, participate in at least one local professional organization. Not only will the connections help you in your current job, they can also make securing the next one much easier.

"It immediately gives you a relative, professional network for your search," says Yate.

5. Be on the lookout for your next job. Just like a corporation, you have to ensure your own financial survival, says Yate. If you believe that your company or job is in jeopardy, update that resume, reach out to your network, hit the job boards (anonymously) and ignite your job search.

6. Keep your debt load light. Use credit only if you are paying off balances in full every month. Otherwise, switch to cash, checks or debit cards, says Cunningham. "That way when the money's gone, the spending stops."

7. Barring a complete personal financial meltdown, continue funding your retirement. "Retirement is going to come," says Edelman. "You need to be ready for it."

8. Swap extraneous spending for smart long-term moves. You can live another month without a new DVD player, but servicing your car or home heating system could net you a nice savings through fuel efficiency and keep you from having to shell out for expensive repairs later.

9. Investigate refinancing. If your credit is good and you're planning to stay in your house for a few more years, refinancing could be a smart move.

Prime rate loans are the lowest they've been in two years, so investigate if a refinance could save you money every month, says Edelman.

Do the math and analyze what it could save you.

10. Re-examine your insurance. You don't want to be underinsured or overinsured. The key is to have enough to cover you at the best rate you can find. Shop your policies, set your deductibles at the highest amount that you can comfortably pay out of pocket and make sure you're getting credit for everything appropriate, like having car alarms, air bags and a good driving record, says Cunningham.

11. Adjust your withholding allowance. "The average refund is well over $2,000," says Cunningham. And most people "could use an extra $200 every month," she says.

The goal: Pay exactly what you owe. You can use the withholdings calculator at IRS.gov to determine what your withholding amounts should be. Then make the correction with your employer.

"You can do that at any time of year," says Cunningham.

12. Reward yourself. Hold out a little discretionary money that you can use for fun.

If you have an unexpected windfall, like a raise, bonus or tax refund, "Treat yourself with some small part and save the rest," says Cunningham.

Another trick for monthly family treats: At the end of the day everyone in the household puts their pocket change in a big jar. Says Cunningham, "At the end of the month, you'll have $20 or $30, and you'll never miss the money."

And if things get really bad ...

13. Ask for an extension on your car loan. "Typically, they will do this once or twice a year," says Cunningham.

How it works: Instead of making your regular payment this month, the lender would tack an extra month onto the end of your loan period. But you won't get off with a zero payment this month, warns Cunningham. You still have to cover the interest.

14. Get an extension on the mortgage. Some home lenders will let you do something similar for your mortgage, says Cunningham. The downside is, while it will help you if you're trying to make up for a short-term problem, (like a large, unexpected bill), it's not effective if you've got a long-running situation, like regular medical bills, a resetting interest rate you can't handle or a long stretch of unemployment.

To work out such a deal, contact the loss mitigation unit in the mortgage department of the company servicing your loan, says Allen Fishbein, director of housing and credit policy for the Consumer Federation of America. Other typical department tags: home preservation or foreclosure avoidance.

15. Talk to a mortgage counselor. Just as you can get debt counseling help, you also can get mortgage counseling. What to look for: a nonprofit service with counselors who are HUD-certified.

They can examine your situation and offer some options like renegotiating your mortgage or getting a rate freeze on your loan that will help you keep your home. They can also negotiate with your lender on your behalf. You can search for counselors on the HUD Web site or call the Department of Housing and Urban Development at (800) 569-4287.

However, not all counselors can be trusted. "Beware of foreclosure rescue companies or organizations that bill themselves as counseling organizations" but are for-profit, says Fishbein.

There is actually some good news for homeowners as a result of the lending crisis, says Fishbein. If you're willing to be pretty candid about your situation, "there may be more options" available than you realize, he says. "Lenders are doing things they traditionally haven't done to keep people in their homes."

Take bubble baths. If soaking in hot water doesn't cheer you up, find out what does, because it could stop you from wasteful splurges after a bad day. "Especially in times like these, it's very important for people...to find other ways [than shopping] to make themselves feel better, whether it's tantric methods, meditation, Chinese balls, or bubble baths—just do what will not break the bank," says Ken McDonnell, program director at the American Savings Education Council.

Host movie night. Going to the movies, especially if you're a popcorn fan, can easily cost $40 for two people. Instead, suggests Faye Griffiths-Smith, community leader for the American Association of Family and Consumer Sciences, rent a movie and invite friends over to watch.

Learn to cook. Not only does eating at restaurants add up, but so too does buying lunch. If you cook dinner at home, you can bring in leftovers to work the next day or take a few minutes to pack a sandwich. If mornings are always rushed, then try packing it at night before bed, suggests Jean Austin, family and consumer science educator for the Maryland Cooperative Extension Service. And when you shop for your ingredients, make sure you have a snack first. Going to the grocery store hungry often leads to impulse buys, Austin warns.

Use the library. Your taxes are paying for it, so take advantage of the free books and movies. Austin says that even her small library in Maryland's rural Kent County offers DVDs, audio books, and free Internet service.

Drink at home. Whether your beverage of choice is green tea, espresso, or beer, it's much cheaper when consumed in the comfort of your own kitchen. Going to a bar with friends can easily cost $50, McDonnell says. Instead, pick up a six-pack and hang out at a friend's house. The social interaction will cheer you up without the hefty bar tab.

Use your savings. If you squirreled away three to six months of emergency savings in advance of being forced to tighten your budget due to a job loss or other unfortunate event, now is the time to use it. "Everybody should be contributing to their own emergency savings fund where it's earning interest," says Austin, so when times are tight, the money can go toward monthly bills and even some small indulgences.

Decide what you really want. Most people can cut 10 percent of their spending within 10 minutes, says Ramit Sethi, author of the I Will Teach You to Be Rich blog. Just write down your major spending categories, such as food and loan payments, and then guess what percentage is going to each category. Make a second list with what you want the percentages to be, and then make a third list describing what they actually are. If the reality doesn't match up with your ideal, then adjust your spending.

Dress in layers. Turning your thermostat down a few degrees and wearing a sweatshirt to stay warm can save on monthly heating costs, says McDonnell, which adds up over time. Just don't skimp on your monthly mortgage or rent payment, or if you need to adjust the payment schedule, contact your lender. Keeping your home should be a top priority.

Do you wish you could save an extra $1,000 this year without downgrading your lifestyle?

It is possible to save big bucks by making small changes in your spending. At first blush, the amounts may not seem like much. However, taken together over the course of a year, they really add up.

Here are some tips to give yourself a $1,000 raise:

7 steps to an extra $1,000
1. Look for discounted dinner entrees
2. Return unopened, unused items
3. Look for extra grocery savings
4. Check out materials from the library
5. Bundle cable, phone and Internet services
6. Negotiate with monthly service providers
7. Stash money for easier savings next year

1. Look for discounted dinner entrees
Saving money doesn't mean you can't enjoy meals at your favorite restaurants. Discount deals can be found in the mail, newspaper or online.

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"Before you head out to eat, check out your restaurant online," says Fatima Mehdikarimi, founder of the coupon Web site TheShoppingQueen.com. "Or, after you arrive, simply ask the manager if they have any special promotions. Don't forget to ask about promotions that are offered on other days or times."

She notes that one restaurant near her home has a relationship with a local movie theater, so diners can get a discount on an entrée if they present a ticket stub.

"Your restaurant might not advertise these types of specials, so definitely ask about them," she says.

If you receive a "half off your entree" special or similar promotion a couple of times a month, and each discount is worth $5, the savings will top $120 after a year.

2. Return unopened, unused items
Many times, extra money may be even closer at hand than you might think.

"If you're looking for extra money, your closets or drawers are a good place to start," says John Mruz, president of Juggling Duck Organizers in Morristown, N.J.

Nearly everyone has a recently purchased product they will never use: the too-large blouse that still has the tag on it, or an unopened set of salt and pepper shakers that didn't fit the kitchen decor.

Try to return the item to get your money back, or it will likely make its way into an overstuffed closet or drawer, Mruz says.

Even if you can't find your receipt, the retailer may accept the return for a store credit.

"I bought $90 worth of new energy-efficient light bulbs for my kitchen a few months ago -- for the purpose of saving money -- only to find that I had the wrong size," says Mruz.

He meant to return the bulbs and exchange them for the correct size, but didn't get around to it right away. Eventually, he forgot about them.

"I put the bulbs in the basement, and they soon got covered over by random junk," Mruz says.

He recently discovered them when he was clearing out his basement.

"Fortunately, my home center retailer had a generous return policy," he says.

For Mruz, clearing some clutter from his basement meant an increase of $90.

3. Look for extra grocery savings
There are several opportunities to save at the local grocery store, even if you don't like to clip coupons.

"When you enter a store, check to see if there are sales ads located near the front," says Mehdikarimi.

You might find a coupon for a purchase you were planning to make. Just make sure the sales don't entice you to buy items that were not already on your shopping list.

If you don't find any deals at the store's entrance, there's still a chance to save money at the checkout line.

"Ask the cashier if there are any coupons or specials going on that would apply to any of your purchases," says Mehdikarimi.

By getting in the habit of asking about sales each time you pay for your groceries, you could regularly discover discounts for items that you were already planning to purchase. The clerk might have extra coupons on hand, or a manager who's ringing up your groceries might let you know about a special offered on one of your brands.

Even a customer may help you if she hears your question and mentions a "buy one, get one free" deal that you missed.

Another way to save is to sign up for store coupon clubs.

"Grocery stores have many programs that allow you to get discounts for purchases," says Mehdikarimi.

If your grocer has a baby club, for example, signing up for the program could save you hundreds of dollars in diapers, infant food and other baby products over the course of a year.

If you're able to save just $4 off of your bill during each weekly shopping trip, total savings would be more than $200 a year.

4. Check out materials from the library
The next time you plan to buy or rent a favorite movie classic, head over to your local library instead and borrow the video for free. Many libraries stock DVDs -- movie classics and newer titles -- and CDs with generous borrowing periods.

If you need children's videos, visit the juvenile area for new cartoons and educational selections.

Adding Up the Savings:

Type	How often?	Savings each time	Yearly savings
Dinner discounts	Twice monthly	$5.00	$120.00
Returning unused items	Varies	Varies	Varies ($90 in this example)
Finding grocery deals	Weekly	$4.00	$208.00
Check out library materials	Monthly	$10	$240.00
Bundling utilities	Monthly	$20.00	$240.00
Negotiating savings on services	Monthly	$10.00	$120.00
		TOTAL:	$1,018.00

While you are at the library, see if they have the latest book releases. Many libraries post best-seller lists for your convenience, and they probably have several copies of many titles. Remember to return everything on time, because libraries charge late fees just like rental stores do.

If you want reading material but you don't want to leave your home, call your local library and ask if they offer e-books that can be downloaded to your computer.

If you borrow just two books or movies a month that you would otherwise buy or rent, you could save between $120 and $240 per year.

5. Bundle cable, phone and Internet services
If you can't live without your cable, telephone and Internet access, but the monthly bills are getting uncomfortably high, consider bundling all of your services under one company.

"With the competition for cable and Internet being so high, there's a good chance that you can negotiate a promotional rate," says Mehdikarimi.

Just be aware that unexpected fees could be added to that low quoted rate.

"Because of taxes and other state-imposed fees, the overall savings for a bundle might not be as great as you may have been led to believe," says Mruz.

However, your bill could still be much less than if you paid for the services separately.

Even if you don't opt for a bundled package, ask your providers for a price break.

"If your rates are too high, call some other companies to find their rates. Then call your current provider and ask them to match the price," says Mehdikarimi. "My philosophy is that it never hurts to ask."

If you're able to reduce your total fees by $20 a month, that adds up to $240 for the year.

6. Negotiate with monthly service providers
Once you get off the phone with your cable, Internet and telephone provider, call your alarm company, lawn care person and any of your other monthly service providers to negotiate prices. Depending on where you live, you might even be able to negotiate natural gas rates.

"Obviously, you're not going to get very far with monopoly utilities, but for the companies that have competition, you can definitely negotiate your price," says Mehdikarimi.

She suggests that in each case, find what out what the competitors are charging. Then ask your provider to match the price.

Don't get discouraged if the first person you speak with can't approve a rate decrease.

"You might need to ask for a supervisor," says Mehdikarimi.

One tip is to call during normal business hours to increase the chances of reaching a supervisor who can authorize a rate change.

If the idea of negotiating for a better price sounds intimidating, remember that the conversation can be pleasant, even if you have to ask the customer service representative to put the boss on the phone.

"The call doesn't have to be confrontational," says Mehdikarimi. "Remember that you'll be in a telephone situation where you're not looking at someone face to face. Tell yourself that they're a random person, and after this call, you'll never have to see them again."

If you save a total of just $10 a month negotiating all your monthly services, you'll save an extra $120 a year.

7. Stash money for easier savings next year
By making these barely noticeable changes to your lifestyle, you could save as much as $1,000 over the next year. But how do you increase your savings in future years?

Bill Billimoria, personal finance expert and author of "On Golden Pond … Or Up the Creek?" suggests letting your cash work for you.

"Take the money you saved so far and put it into a high-interest savings account or mutual fund," he says. "Then let compounding interest do the magic."

If you place $1,000 in an account that pays a 7 percent annual return on investment, the original amount will nearly double after 10 years. That means twice the money for no extra work.

Saving money by doing "nothing" can be a very lucrative habit.