Form 1040 Schedule A - Itemized Deductions
Federal Form 1040 Schedule A, also known as Itemized Deductions, is used by taxpayers in the United States to report various deductible expenses they incurred during the tax year. Instead of claiming the standard deduction, taxpayers can choose to itemize their deductions if their eligible expenses exceed the standard deduction amount.
Some common deductible expenses reported on Schedule A include:
-
Medical Expenses: Qualified medical and dental expenses that exceed a certain percentage of the taxpayer's adjusted gross income.
-
State and Local Taxes: Deductions for state and local income taxes, as well as property taxes paid on homes and other real estate.
-
Interest Payments: Deductible mortgage interest on loans used to buy, build, or improve a home, as well as certain investment interest.
-
Charitable Contributions: Contributions made to qualified charitable organizations, including cash donations and the fair market value of donated goods.
-
Casualty and Theft Losses: Deductions for losses incurred due to unexpected events, such as natural disasters or theft, that are not covered by insurance.