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There are three major ways to reduce your taxes and maximize your refund.
Reduce your taxable income with income adjustment deductions. You don't have to itemize to claim them. These adjustments to income can be claimed whether you use the standard deduction or itemize your deductions. They are in addition to itemizing your deductions.
Itemize your deductions rather than taking the standard deduction.
Reduce the taxes you owe by using tax credits. Tax credits are like tax deductions on steroids. Tax credits reduce your tax liability dollar for dollar. Some credits, called non-refundable credits, can reduce the taxes you owe to $0 (zero dollars). Some credits, called refundable credits, can actually get you a refund without you paying any tax at all. Like the first way, reducing income with adjustments, these credits can be claimed whether you use the standard deduction or itemize your deductions.
Each way can be claimed independently of each other. Choose the one(s) that fit you. Use one or use them all. It's sort of like the menu at a Chinese Food Restaurant. Ample choices, little restrictions.
The Earned Income Tax Credit (EITC) can be claimed on all three forms: 1040ez, 1040a, and the 1040.
All the other income adjustments and tax credits can be claimed on both Forms 1040a and 1040.
To itemize your deductions you can only use Form 1040.
This section describes the types of income adjustments and tax credits you can take. It also tells you how to claim them on your tax return.
Whether and how to take the standard deduction or to itemize your deductions is described in another section on the left navigation bar, Standard or Itemized Deductions?.
There are six (6) ways to reduce your taxable income with adjustments to income. They are:
