All About Schedule A (Form 1040 or 1040-SR): Itemized Deductions

Schedule A (Form 1040 or 1040-SR) is a tax form used by taxpayers to claim itemized deductions. Itemized deductions are expenses that can be subtracted from your taxable income to reduce your taxes. Some common itemized deductions include medical expenses, mortgage interest, charitable contributions, and state and local taxes.

To claim itemized deductions, you must file Form 1040 or 1040-SR. You can also claim itemized deductions on Form 1040-NR if you are a nonresident alien.

The amount of itemized deductions you can claim is limited to the amount of your adjusted gross income (AGI). Your AGI is your total income minus certain deductions, such as your standard deduction or personal exemption.

If your itemized deductions are less than your standard deduction, you will not be able to claim any itemized deductions. However, you may still be able to claim the standard deduction if you are eligible.

The standard deduction is a fixed amount that you can claim instead of itemizing your deductions. The amount of the standard deduction depends on your filing status and age.

If you are married filing jointly, you can claim the standard deduction of $25,100 in 2023. If you are single, head of household, or qualifying widow(er), you can claim the standard deduction of $18,800 in 2023.

If you are 65 or older or blind, you can claim an additional standard deduction of $1,350 in 2023. If you are married filing jointly and one spouse is 65 or older or blind, you can claim an additional standard deduction of $1,700 in 2023.

You can claim itemized deductions for medical expenses that you paid for yourself, your spouse, or your dependents. Medical expenses are only deductible if they are more than 7.5% of your AGI.

You can claim itemized deductions for mortgage interest that you paid on your principal residence or second home. You can also claim itemized deductions for interest paid on home equity loans or lines of credit, as long as the loan proceeds were used to improve your home.

You can claim itemized deductions for charitable contributions that you made to qualified organizations. Qualified organizations include churches, charities, educational institutions, and other organizations that are exempt from federal income tax.

You can claim itemized deductions for state and local taxes that you paid. This includes state income taxes, property taxes, and sales taxes.

You can also claim itemized deductions for other expenses, such as casualty losses, job expenses, and investment expenses.

If you are claiming itemized deductions, you must keep receipts for all of your expenses. You will need to attach these receipts to your tax return when you file.

Claiming itemized deductions can help you reduce your taxes. However, you should carefully consider whether it is worth itemizing your deductions. If your itemized deductions are less than your standard deduction, you will not be able to claim any itemized deductions.