TAMPA, Fla., December 4, 2003/PRNewswire/ - With the holiday season now upon us, many people have forged ahead with their annual rituals of shopping, overeating and spending time with family and friends. However, Amscot Tax Service suggests taxpayers should add one more rite to their list: reviewing their tax deductions.

Most people foolishly leave their tax planning until April and, unfortunately, are often forced to settle for the standard deduction instead of itemizing. And although the standard deductions have recently been raised to $4,750 for single taxpayers, $9,550 for married taxpayers filing a joint return and $7,000 for head of household taxpayers, taxpayers who itemize their deductions can drastically reduce their liability to the IRS.

That's why Amy Otteson, service bureau director for Amscot Tax Service, recently reminded taxpayers of several overlooked deductions that could prevent them from overpaying their taxes.

"By reviewing their tax situations now, taxpayers still have time to make the deductions that could save them money later," Otteson explains.

First, the most common deduction is mortgage interest. Taxpayers who own their own home can fill out Schedule A to determine if their itemized deductions would be larger than the standard deduction to which they're entitled.

What's more, taxpayers who refinanced their home mortgages are also able to deduct a portion of their refinancing costs.

Second, Otteson emphasizes that certain medical expenses, such as laser surgery or weight loss programs, are deductible if the total medical expenses exceed 7.5 percent of gross income. However, to qualify for the deduction, taxpayers must undergo these treatments for medically valid reasons.

Third, Otteson stresses that being charitable has more benefits than one. Taxpayers who keep a record of their charitable contributions can easily itemize their deductions on Schedule A and receive a tax break, as well as the joy of having supported a worthy cause.

Next, military personnel receive several breaks thanks to recent tax law changes. The most important one, however, is that individuals who were in a combat zone are able to exclude any income earned during that time, as long as it is reflected properly on the W-2 form.

Finally, one of the most lucrative, but yet often overlooked, ways to save on taxes is by contributing to an Individual Retirement Account by April 15. As long as you are under the age of 70 ½ and earned some form of income during 2003, you are eligible to contribute - and deduct - up to $3,000.

Headquartered in Tampa, Fla., Amscot Tax Service is a division of Amscot Financial, a leading provider of convenient retail financial services for the mainstream consumer. Founded in 1989, Amscot Tax Service provides income tax preparation, electronic filing services and refund anticipation loans through its more than 50 tax preparation offices throughout West Central Florida. For additional information, please visit the division's web site at www.amscottax.com.