Understanding IRS Schedule A: Itemized Deductions
Schedule A allows taxpayers to claim specific deductions that may exceed the standard deduction amount.
Key Itemized Deduction Categories
- Medical Expenses: Deductible portion exceeding 7.5% of AGI
- Taxes Paid: State/local income or sales tax (up to $10K cap)
- Home Interest: Mortgage interest on first $750,000 of debt
- Charitable Gifts: Cash donations up to 60% of AGI
- Casualty Losses: Only federally declared disaster losses
When Itemizing Makes Sense
- Your total deductions exceed the standard deduction ($13,850 single / $27,700 married in 2023)
- You have significant mortgage interest or property taxes
- You made large charitable contributions
- You had major unreimbursed medical expenses
Taxpayers in high-tax states often benefit most from itemizing.
Critical Documentation Needed
- Medical: Receipts, insurance statements, mileage logs
- Taxes: Property tax bills, state tax withholding records
- Interest: Form 1098 from mortgage lender
- Donations: Acknowledgement letters for gifts over $250
Common Limitations to Know
- State/local tax (SALT) deduction capped at $10,000
- Mortgage interest deduction limited to primary/second homes
- Charitable cash donations limited to 60% of AGI
- Miscellaneous deductions no longer allowed (2018-2025)
Related Tax Forms
- Form 1040 (Main tax return)
- Form 1098 (Mortgage interest statement)
- Form 8283 (Non-cash charitable contributions)
- Form 4684 (Casualty losses)
Should You Itemize or Take the Standard Deduction?
KARME Tax Services provides:
- Deduction optimization analysis
- Documentation review for audit protection
- Year-round tax planning to maximize write-offs
- State-specific deduction strategies