Guide to Itemized Deductions (Schedule A)

📋 Itemized Deductions Navigator

A Guide to Maximizing Your Schedule A

Should You Itemize?

This guide, based on the IRS Instructions for Schedule A, helps you determine if taking itemized deductions will lower your tax bill more than the standard deduction. Use the calculator below to find out.

Standard vs. Itemized Deduction Calculator

1. Select Your Filing Status Single Married Filing Jointly Married Filing Separately Head of Household Qualifying Widow(er)

Your standard deduction is: $29,200

2. Estimate Your Itemized Deductions

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Exploring Your Deductions

Medical and Dental Expenses

You can deduct the amount of medical care expenses that exceeds 7.5% of your Adjusted Gross Income (AGI). This includes costs for yourself, your spouse, and your dependents.

Calculate Your Deductible Amount

Your AGI (Form 1040, line 11)

Total Medical Expenses Paid

7.5% AGI Threshold: $0

Your Medical Deduction: $0

Common deductible expenses include: insurance premiums (post-tax), doctor visits, prescription drugs, dental care, eyeglasses, and travel costs for medical care (21 cents/mile for 2024).

State and Local Taxes (SALT)

Your total deduction for state and local taxes is capped at $10,000 per household per year ($5,000 if married filing separately). This is known as the "SALT Cap."

What's Included in the SALT Cap?

You must choose to deduct EITHER your state and local income taxes OR your state and local sales taxes. You cannot deduct both. You then add your property taxes to the one you chose.

Option 1: Income Taxes + Property Taxes

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Option 2: Sales Taxes + Property Taxes

Use the IRS tables or actual receipts for sales tax.

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Your Total State & Local Tax Deduction:

$0

Capped at $10,000

Home Mortgage Interest

You can deduct interest on mortgage debt used to buy, build, or substantially improve your main home or a second home.

Mortgage Debt Limits

The rules depend on when you took out the mortgage:

• After Dec 15, 2017: Interest on up to $750,000 of qualified debt is deductible ($375,000 if MFS).
• On or before Dec 15, 2017: Interest on up to $1,000,000 of qualified debt is deductible ($500,000 if MFS).

Key Points

• This includes interest reported on Form 1098.
• Interest on home equity debt is only deductible if the proceeds were used to buy, build, or substantially improve the home.
• You can also deduct "points" paid to secure a mortgage, often over the life of the loan.

Gifts to Charity

You can deduct contributions made to qualified charitable organizations. It's crucial to keep good records, especially for larger donations.

Cash Contributions

• Includes donations by check, credit card, or payroll deduction.
• Also includes out-of-pocket expenses while volunteering (e.g., mileage at 14 cents/mile).
• For any gift of $250 or more, you MUST have a written acknowledgment from the charity.

Non-Cash Contributions

• Deduct the fair market value of donated goods (like clothing or furniture) that are in "good used condition or better."
• If your total non-cash deductions are over $500, you must file Form 8283.
• Stricter rules and appraisal requirements apply for high-value items like art or vehicles.

General Limit: Your deduction for cash gifts is typically limited to 60% of your AGI. Other limits apply to property donations. Excess contributions can often be carried over for up to 5 years.

The Bottom Line: Records Are Everything

To claim any itemized deduction, you need proof. Keep receipts, bank statements, acknowledgments from charities, and mileage logs organized. Good records are the foundation of a solid tax return.

Disclaimer: This guide is for informational purposes and not a substitute for professional tax advice. Based on 2024 Instructions for Schedule A. Consult a qualified professional for your specific situation.