This form allows you to detail specific expenses you incurred throughout the year that you want to deduct from your taxable income. It's an alternative to taking the standard deduction, which is a flat dollar amount that all taxpayers can deduct, regardless of their expenses.
You would typically choose to itemize your deductions on Schedule A if the total amount of your itemized deductions is greater than the standard deduction for your filing status.
- Medical and dental expenses: Deductible out-of-pocket medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI). These expenses might include fees paid to doctors, dentists, surgeons, psychologists, and nontraditional medical practitioners; inpatient hospital care or residential nursing home care; and premiums for health insurance, to name a few.
- State and local taxes: Deductible state, local income taxes, or sales taxes (but not both), plus property taxes. There's a limit to how much of these taxes you can deduct.
- Interest you paid: Deductible mortgage interest paid on a loan secured by your main home or a second home. You may also be able to deduct investment interest expenses.
- Gifts to charity: Donations to eligible charities. These can be cash but can also include property or even mileage driven for charitable service.
- Casualty and theft losses: Property losses due to a theft or a federally declared disaster can be deducted here.