More American families are finding themselves in an uncomfortable situation this tax season: They're faced with a rise in the standard deduction for married couples filing jointly, combined with a drop in deductible interest as a result of refinancing their mortgages.

It's nothing to complain about, because it means that they spent less money during the year on items such as mortgage interest, putting more cash in their pockets each week.

However, it still comes as a surprise for many who had become accustomed to turning higher-than-standard deductions into a hefty return check.

When retired banker Richard Mangan of Greece, N.Y., discovered the change, he understood exactly why.

"Two things happened," he said. "Last year, we had some extra furniture from a house at the lake we sold. We donated the furniture to charity. The second thing was we refinanced our mortgage and the amount that we could deduct for that went down substantially. Good news, bad news. It's a lot better rate, but we have a lot less deduction."

What's deductible Here are oft-overlooked facts that could make the difference between taking the standard deduction and getting extra dollars off your tax bill: • Interest on consumer loans such as car loans is not deductible. Neither is interest on credit-card debt. But mortgage interest is, and so are points on a first mortgage. • Miscellaneous deductions allow for expenses for a job search, but only for someone who is unemployed. If you are employed and looking for a new job, those expenses are not deductible. Other miscellaneous expenses that may be overlooked and can usually be deducted include union dues, expenses associated with business education (such as seminars), safe-deposit-box rentals and tax-preparation fees. • Clothing and other donations can be listed as a charitable deduction, but you should have a list of the donated items and a receipt from the recipient. Keep pictures and clip comparable sales from a newspaper as part of the proof of the value of the donations. • A portion of long-term-care insurance premiums may be deductible as a medical expense.

The standard deduction for married couples filing jointly was raised substantially — from $7,850 on a 2002 return to $9,500 for 2003 — when Congress eliminated the so-called "marriage penalty." The deduction now is exactly double the standard deduction for a single taxpayer.

"I have seen a lot more people using the standard deduction," said Karen Erb, a tax preparer. But she says it's more than just the marriage-penalty elimination that has caused it.

"The reason is that there is not much you can claim anymore," she said. "I give people the list and say these are the only things that you can take 100 percent, and they say, 'Oh, my goodness.' "

On Schedule A, the IRS form where itemized deductions are listed, the categories are medical and dental expenses, taxes, interest, gifts to charity, casualty and theft losses, and miscellaneous deductions.

Miscellaneous deductions are allowed only after subtracting 2 percent of adjusted gross income from the total. To take a medical and dental deduction, you must first subtract 7.5 percent of adjusted gross income from the total. So a family with an adjusted gross income of $60,000 needs more than $1,200 in receipts for a miscellaneous deduction and more than $4,500 in bills for a medical deduction.

Rose Maye, a Rochester, N.Y., tax preparer, said some of her clients often forget to make a claim for noncash contributions, such as clothing donations to thrift stores.

Others may overlook the United Way contribution withheld from paychecks.

Another area that people often forget is mileage, either for charitable endeavors or medical matters, said Thomas Walpole, tax director for AM&M Financial Services in Perinton, N.Y.

"Medical mileage is 12 cents a mile, and that includes going to get your prescriptions," he said. "Charitable driving is 14 cents a mile."

However, Walpole advises, be careful before you claim it.

"Let's say you help count the collection at church," he said. "That's deductible (if the trip is only to count the collection). But if you drive to the service and count the money (afterward), that's not. It has to be a separate trip back and forth to be deductible."

Q: We listed our home for sale with a fine real estate agent. She did everything right. Another agent with a different brokerage firm brought us a buyer through the local multiple listing system. After considerable negotiation, we agreed on the sales price and terms. But three weeks later, the buyers changed their minds and canceled their purchase.

Naturally, we were very upset, since we had made plans to move. Our agent was disappointed, but she understands these things happen. However, the other agent is threatening to sue us for her half of the sales commission. But our listing agent says she won't sue us for letting the buyers out of the contract. The earnest money good-faith deposit was only $1,000, which the buyers have agreed to forfeit. What should we do since we don't want to be sued for the sales commission?

A: It is shocking how many home buyers and sellers erroneously think they can cancel a purchase contract without any legal consequences. As you are discovering, this is not true.

When all else fails, read your contract. Most well-drafted purchase agreements specify what is to happen if the sale fails to close. For example, many contracts state the earnest money deposit is forfeited with the seller receiving half and the listing agent receiving half. In your situation, that means you get $500 and your listing agent gets $500 of which $250 should go to the selling agent.

However, you should have consulted both agents before releasing the buyer from the contract. Of course, if your agreement contained a liquidated damages clause limiting the damages to the $1,000 forfeited earnest money deposit, then the agents probably don't have any legal basis for a lawsuit to collect their lost commission.

If the selling agent who found the buyer carries through with the threat to sue you, she has a legal problem because she was working either as a sub-agent of your listing agent or as a cooperating agent representing the buyer. It is questionable if she could win a lawsuit against you, since she was not a party to the listing agreement.

Your situation shows what a sticky mess can be created when a home buyer defaults. Not only are the legal rights of the seller and buyer involved, but also the sales commission rights of the agents. For full details please consult a local real estate attorney.

Q: You often answer real estate questions and then advise the reader to consult a local real estate attorney. My question is how can I find a top quality real estate attorney? I've phoned several attorneys listed in the phone book Yellow Pages who say they specialize in real estate, but I can't find one to handle my tax-deferred exchange. How can I find a good real estate attorney?

A: Recommendations of friends, business associates, real estate investors and your banker are best. But if those sources don't produce results, just phone your local Board of Realtors to obtain the name of their attorney. That person is usually a very knowledgeable real estate attorney. But if that attorney is unable to handle your situation, ask him or her to recommend a qualified local real estate or tax attorney.

Q: A friend is a real estate investor. She was involved in a partnership which owned an apartment building that was lost in a foreclosure. The lender suffered a loss of about $300,000 and is now suing the four investors. My friend told me she should have insisted the mortgage be "non-recourse." What does that mean?

A: A non-recourse mortgage means the property alone is the sole security for repayment of the mortgage loan. In case of default on a non-recourse mortgage, the lender can only recover the loan balance by foreclosure against the property alone.

Since your friend's mortgage allows recourse against the borrowers, that means the lender can collect the $300,000 deficiency loss from the personal assets of the borrowers who signed the mortgage. In the future, I hope you and your friend will only sign non-recourse mortgages. For full details, please consult your attorney.

Q: I understand President Clinton is planning to tax capital gains upon the owner's death. This could be a nightmare for me because my mother is dying of cancer and she owns several income properties which I will inherit.

These apartment properties have supported my mother and me for many years, since I am disabled and unable to work. The doctor says my mother has less than a year to live. Since my mother and my late father bought these buildings many years ago, her cost basis is extremely low. If Clinton taxes the capital gain upon my mother's death I will be forced to sell them to pay the tax. Is there any way to avoid this nightmare?

A: As you know, until now death has been the ultimate tax shelter because capital gains are currently not taxed when the asset owner dies. This has been the major reason I often advise it is better to inherit real estate which has appreciated in market value than it is to receive it as a gift before the owner's death. A donee receiving such a gift takes over the donor's adjusted cost basis.

If President-elect Clinton proceeds with his threat to tax capital gains upon the owner's death, it would then be to your advantage for your mother to gift her properties to you before her death. Although you will then have a very low cost basis for them, when she dies you won't be forced to sell to pay Clinton's capital gain tax at the time of her death.

I suggest you keep informed and study Clinton's tax proposals. If you see something you don't like, contact your congressional representatives to express your displeasure and urge their opposition.

(Copyright 1992, Tribune Media Services Inc.) Bob Bruss' column appears Sundays in the Home/Real Estate section of The Times. Letters and comments should be sent to Bob Bruss, Seattle Times Newsroom, P.O. Box 70, Seattle, WA 98111.