Client interview: hunting for itemized deductions

Many clients assume the standard deduction is their only option if they don't own a home. But high state taxes, large charitable gifts or big medical bills can add up to more than the standard deduction, especially in a high-tax state like California.

The way to find out is a good interview. Ask open questions by category, and ask about events, not forms. People remember a surgery or a move far better than a receipt.

Questions to build into every interview

• Taxes paid: "Did you have state tax withheld, or make state estimated payments? Did you owe your state money when you filed last year?" "Do you pay property tax on a home, land, or a boat? In California, did you renew a vehicle registration?" (part of it, the vehicle license fee, is a deductible property tax)
• Big purchases: "Did you buy a car, boat or home improvement materials?" (if state income tax is small, the sales tax deduction might be larger)
• Health: "Were there any surgeries, hospital stays, dental work, hearing aids, long-term care, or a lot of travel for treatment?" "Did you pay health insurance premiums yourself, outside of work?"
• Giving: "Did you give to a church, school or charity, including through payroll or online?" "Did you donate clothes, furniture or a car?" "Did you drive for volunteer work?" (14 cents a mile)
• Home and loans: "Do you pay a mortgage or home equity loan used to buy or improve the home?" "Did you pay points when you bought or refinanced?"
• Other: "Any gambling winnings and losses?" "Any casualty losses in a federally declared disaster, such as a wildfire?"