1040 Schedule A Form: Instructions for Itemized Deductions

Form 1040 Schedule A is the tax form used by individuals to claim itemized deductions. By listing eligible expenses, taxpayers can subtract them from their adjusted gross income (AGI) to lower their overall tax liability. Filing Schedule A is an alternative to taking the standard deduction, and it provides a greater tax benefit if the total of your deductible expenses is higher than the standard amount.

Deciding to Itemize

The choice to itemize deductions depends on whether your total eligible expenses are greater than your standard deduction. The standard deduction is a fixed dollar amount you can subtract from your AGI. For the 2024 tax year (the return you file in 2025), the standard deduction for single filers and those married filing separately is $14,600. For married couples filing jointly, the amount is $29,200, and for heads of household, it is $21,900.

To make a preliminary decision, conduct a high-level tally of your potential itemized deductions without needing to know all the specific rules yet. Gather the totals for major expenses like state and local taxes, home mortgage interest, charitable gifts, and significant medical expenses. If this initial sum is clearly higher than the standard deduction for your filing status, proceeding with itemizing is beneficial. If your estimate is close to the standard deduction, it is worth gathering detailed documentation to determine your exact figures.

Information and Documentation for Itemized Deductions

Medical and Dental Expenses

You can deduct the portion of your medical and dental expenses that exceeds 7.5% of your adjusted gross income (AGI), which is found on your Form 1040. Qualifying expenses include payments for doctor visits, dental care, hospital stays, prescription medications, and transportation costs for medical care. You cannot include any expenses for which you were reimbursed by insurance or another party.

To claim these expenses, you must maintain records. Keep all receipts from pharmacies, doctor’s offices, and hospitals. Bank or credit card statements showing payments to medical providers are also necessary, along with health insurance statements to track reimbursements.

Taxes You Paid

A deduction for state and local taxes is subject to a limitation. You can deduct either state and local income taxes or state and local general sales taxes, but not both. You can also deduct state and local real estate and personal property taxes. The total deduction for all state and local taxes (the SALT deduction) is capped at $10,000 per household per year, or $5,000 if married filing separately.

Documentation includes your Form W-2 for state income tax withheld and tax bills for property taxes. For sales taxes, the IRS provides optional sales tax tables, or you can use actual receipts from large purchases, such as a vehicle.

Interest You Paid

The most common deduction in this category is for home mortgage interest. You can generally deduct interest on up to $750,000 of mortgage debt ($375,000 if married filing separately) used to buy, build, or improve your main or second home. Your lender sends Form 1098, Mortgage Interest Statement, which reports the interest and any points you paid.

Form 1098 is the primary documentation for this deduction. If mortgage proceeds were used for other purposes, like paying off credit card debt, the interest on that portion of the loan is not deductible.

Gifts to Charity

Contributions made to qualified charitable organizations can be deducted. For cash contributions, including those made by check, credit card, or payroll deduction, you can generally deduct up to 60% of your AGI. For donations of property, the limits can vary. It is important to ensure the organization is a 501(c)(3) public charity or private foundation.

The documentation required depends on the amount and type of donation. For any cash contribution under $250, you need a bank record, such as a canceled check or a credit card statement. For cash contributions of $250 or more, you must have a written acknowledgment from the charity that states the amount of the donation and whether you received any goods or services in return.

Casualty and Theft Losses

Deductions for casualty and theft losses of personal-use property are restricted. These losses are only deductible if they are attributable to a federally declared disaster, meaning the President has declared your area a major disaster zone.

If you have a qualifying loss, you must complete Form 4684, Casualties and Thefts, to calculate the loss amount. You will need records proving the property’s value before and after the event, such as appraisals, and documentation of any insurance reimbursement received.

Other Itemized Deductions

This section covers less common deductions. One is for gambling losses, which can only be deducted up to the amount of your gambling winnings. You must report your winnings as income on Schedule 1 of Form 1040. To deduct losses, you need to keep a detailed diary or record of your winnings and losses, including dates, locations, and amounts.

Completing and Filing Schedule A

Once you have calculated the deductible amounts, you are ready to complete the form, which can be downloaded from the IRS website. Transfer your totals onto the corresponding lines for medical expenses, state and local taxes, and other deductions. Follow the form’s instructions to add the amounts from each category to arrive at your total itemized deductions.

This final number is then transferred to the designated line on your main Form 1040. If filing a paper return, you must attach the completed Schedule A behind your Form 1040. For those who e-file, tax software automatically includes your Schedule A data with your electronic submission.