Form 1040 Schedule A: Itemized Deductions – A Taxpayer's Guide (2022)
What Form 1040 Schedule A Is For
Schedule A is an attachment to your Form 1040 or Form 1040-SR that allows you to claim itemized deductions instead of taking the standard deduction. Think of it as an alternative way to reduce your taxable income by adding up specific expenses you paid during the tax year. You'll only use Schedule A if your total itemized deductions exceed your standard deduction amount, which for 2022 was $12,950 for single filers, $25,900 for married couples filing jointly, and $19,400 for heads of household.
Schedule A organizes your deductible expenses into specific categories: medical and dental expenses, state and local taxes, home mortgage interest, gifts to charity, casualty and theft losses from federally declared disasters, and certain other itemized deductions. The form walks you through calculating what portion of each expense category qualifies for deduction, applying the various limits and thresholds that Congress has built into the tax code. Once you complete Schedule A, the total from line 17 carries over to your Form 1040, reducing your adjusted gross income and ultimately lowering your tax bill.
The fundamental principle is simple: you compare your itemized deductions total to your standard deduction and take whichever amount is larger. In most cases, your federal income tax will be less when you take the larger deduction. However, keep in mind that itemizing requires substantially more recordkeeping and documentation than simply claiming the standard deduction.
When You'd Use Form 1040 Schedule A (Including Late or Amended Returns)
You use Schedule A when preparing your original 2022 tax return if your itemized deductions exceed your standard deduction. Most taxpayers file their original returns between January and April 15 of the following year (April 18, 2023, for 2022 returns). If you're uncertain whether to itemize, you should calculate both methods—adding up potential itemized deductions and comparing the total to your standard deduction amount.
If you filed your 2022 return without itemizing but later realize your itemized deductions would have been larger than the standard deduction you claimed, you can file an amended return using Form 1040-X. The same applies in reverse: if you originally itemized but discover you would have paid less tax with the standard deduction, you can amend. When filing Form 1040-X to change your deduction method, you must complete a new Schedule A if you're switching to itemized deductions, and attach it to your amended return along with any required supporting forms.
Amended returns must generally be filed within three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later. For 2022 returns filed by the April 2023 deadline, this typically means you have until April 2026 to amend. When completing Form 1040-X, you'll show the amounts as originally filed in Column A, the net changes in Column B, and the correct amounts in Column C.
Key Rules or Details for 2022
Several important limitations govern what you can deduct on Schedule A.
Medical and Dental Expenses Threshold
Medical and dental expenses are only deductible to the extent they exceed 7.5 percent of your adjusted gross income. If your AGI is $50,000, for example, you can only deduct medical expenses above $3,750—meaning the first $3,750 provides no tax benefit.
$10,000 Cap on State and Local Taxes
State and local taxes face a strict $10,000 cap ($5,000 if married filing separately), regardless of how much you actually paid. This limit combines state and local income taxes (or sales taxes if you elect that option), real estate taxes, and personal property taxes. Many taxpayers in high-tax states find this limitation significantly reduces their itemized deductions compared to prior years.
Home Mortgage Interest Limits
Home mortgage interest deductions depend on when you took out your loan. For mortgages dated on or before December 15, 2017, you can deduct interest on up to $1 million of debt ($500,000 if married filing separately). For mortgages taken out after that date, the limit drops to $750,000 ($375,000 if married filing separately). Additionally, the mortgage must have been used to buy, build, or substantially improve your main home or second home—interest on home equity loans used for other purposes generally doesn't qualify.
Charitable Contribution Percentage Limits and Documentation
Charitable contributions have percentage-of-AGI limits: cash gifts to public charities are generally limited to 60 percent of AGI, while gifts of capital gain property face a 30 percent limit, and gifts to certain private foundations are limited to 20 percent. You must maintain proper documentation—bank records for any cash contribution and contemporaneous written acknowledgments from the charity for any single contribution of $250 or more. Donations of clothing and household items must be in good used condition or better to qualify.
Casualty and Theft Loss Restrictions
Casualty and theft losses face severe restrictions. For tax year 2022, you can only deduct personal casualty and theft losses attributable to a federally declared disaster, and only to the extent that each loss exceeds $100 and your total losses exceed 10 percent of your AGI.
Step-by-Step (High Level)
Step 1: Gather Your Documentation
Begin by gathering documentation for all potentially deductible expenses: medical bills and insurance statements, property tax bills, mortgage interest statements (Form 1098), charitable contribution receipts, and any other relevant records. You'll need these not just to complete the form, but to keep with your tax records in case of IRS examination.
Step 2: Calculate Medical and Dental Expenses
Start with Lines 1 through 4, calculating your medical and dental expenses. Add up all unreimbursed expenses, then multiply your AGI by 7.5 percent to find your threshold. Subtract the threshold from your total expenses—only amounts above this threshold go on Line 4.
Step 3: Enter State and Local Taxes
Move to Lines 5a through 5e for taxes. Decide whether to deduct state and local income taxes or sales taxes (you can't deduct both). Add your real estate taxes and personal property taxes. Remember the $10,000 combined limit applies to these lines.
Step 4: Report Home Mortgage Interest and Other Interest
Lines 8a through 8e cover interest. Report home mortgage interest from Form 1098, mortgage insurance premiums if applicable, and investment interest. Apply the appropriate limitations for mortgage principal amounts based on when you obtained your loans.
Step 5: Enter Charitable Contributions
Lines 11 through 14 handle charitable contributions. Separate cash contributions from non-cash gifts, and attach Form 8283 if your non-cash gifts exceed $500. Calculate any necessary carryovers if you exceed the percentage-of-AGI limits.
Step 6: Add Casualty, Theft, and Other Itemized Deductions
Complete Line 15 for casualty and theft losses if you had losses from a federally declared disaster, and Line 16 for other allowable itemized deductions. Add all categories on Line 17 for your total itemized deductions, which transfers to Form 1040.
Common Mistakes and How to Avoid Them
Double-Counting Deductions
One frequent error involves double-counting deductions. Don't include items on Schedule A that you've already deducted elsewhere—for instance, self-employed health insurance deducted on Schedule 1, or business expenses deducted on Schedule C. Similarly, if your employer deducts health insurance premiums on a pre-tax basis (shown by their absence from Box 1 of your W-2), you cannot deduct those premiums again on Schedule A.
Misunderstanding State Tax Refunds
Many taxpayers incorrectly reduce their deductions for state tax refunds received during the year. Don't reduce your current-year deduction by any state or local income tax refund you expect to receive. Instead, if you received a refund in 2022 for taxes you deducted in a prior year, and that deduction reduced your tax, you may need to report the refund as income on Schedule 1.
Not Netting Medical Reimbursements
For medical expenses, people often forget that insurance reimbursements must reduce your deduction. If you paid $5,000 in medical bills but later received a $2,000 insurance reimbursement in the same year, you can only deduct based on the net $3,000. Taxpayers also frequently fail to request copies of their real estate tax bills, which may contain non-deductible charges for services like trash collection that don't qualify as deductible taxes.
Charitable Contribution Documentation Errors
Charitable contribution mistakes are particularly common. Every cash donation, regardless of amount, requires documentation—a bank record or written acknowledgment from the charity. Donations of $250 or more require a contemporaneous written acknowledgment that you must obtain before filing your return. Never attach these documents to your return; keep them with your tax records. Also remember that contributions of clothing and household goods must be in good used condition or better, and non-cash contributions over $500 require Form 8283.
Misreading Real Estate Tax Bills and Escrow
For real estate taxes, examine your tax bill carefully. Assessments for improvements that increase property value (like installing new sidewalks) are not deductible, though charges to maintain existing facilities are. If your mortgage payments include escrow for taxes, you can only deduct what the mortgage company actually paid to the taxing authority in 2022, not what you paid into escrow.
What Happens After You File
Once you file your return with Schedule A attached, the IRS processes it like any other tax return. Your itemized deductions reduce your taxable income, which in turn reduces your tax liability. If you're due a refund, the IRS typically issues it within 21 days for electronically filed returns.
The IRS may select your return for examination, though having itemized deductions doesn't automatically trigger an audit. If examined, you must produce the documentation supporting your claimed deductions. This is why the instructions repeatedly emphasize keeping records with your tax files rather than submitting them with your return. You should retain receipts, canceled checks, acknowledgment letters, and all supporting documents for at least three years from the filing date.
If you later receive reimbursements or refunds for expenses you deducted, the tax treatment varies. If you receive a reimbursement in 2022 for medical expenses you paid and deducted in 2022, reduce your 2022 deduction by that amount. However, if you receive a reimbursement in 2022 for medical expenses you deducted in a prior year, don't reduce your 2022 deduction. Instead, if the prior-year deduction reduced your tax, you must include the reimbursement as income on your 2022 return. The same principle applies to state and local tax refunds.
The IRS may send you a notice if they identify discrepancies, such as mortgage interest amounts that don't match what lenders reported on Forms 1098, or if they need clarification about certain deductions. Respond promptly to any IRS correspondence, providing the requested documentation to support your claimed deductions.
IRS Topic 308 - Amended Returns
FAQs
How do I know if I should itemize or take the standard deduction?
Calculate both. Add up all your potential itemized deductions from medical expenses, taxes, mortgage interest, and charitable contributions. Compare this total to the standard deduction for your filing status ($12,950 single, $25,900 married filing jointly, $19,400 head of household for 2022). Take whichever is larger. If your itemized deductions fall short of the standard deduction by only a small amount, consider whether making additional charitable contributions before year-end might push you over the threshold.
Can I deduct sales tax or income tax—which is better?
You must choose one or the other; you cannot deduct both. Most taxpayers benefit more from deducting state and local income taxes. However, if you made a major purchase like a car or boat, or if you live in a state with no income tax, deducting sales tax might be more beneficial. You can calculate sales tax deductions using either actual receipts or the IRS optional sales tax tables. Remember that whichever option you choose still faces the $10,000 combined limit with property taxes.
What medical expenses can I deduct?
You can deduct unreimbursed payments for diagnosis, treatment, mitigation, or prevention of disease, including insurance premiums (unless paid pre-tax through your employer), prescription drugs, doctors and dentists, hospital care, qualified long-term care services, medical equipment, and transportation for medical care. You cannot deduct cosmetic surgery (unless medically necessary), non-prescription drugs, health club dues, or items that are merely beneficial to general health. Only the amount exceeding 7.5 percent of your AGI is deductible.
Do I need receipts for charitable contributions?
Yes, without exception. For any cash contribution, you must have a bank record (canceled check, credit card statement) or written receipt from the charity. For any single contribution of $250 or more, you also need a contemporaneous written acknowledgment from the charity showing the amount and whether you received any goods or services in return. For non-cash contributions over $500, you must file Form 8283. Keep all documentation with your tax records—never attach them to your return.
What if I forgot to claim something—can I go back and itemize?
Yes, you can file Form 1040-X to amend your return. You generally have three years from the date you filed your original return to claim a refund. Complete a new Schedule A showing the correct itemized deductions, attach it to Form 1040-X, and explain the changes in Part III of that form. The IRS will process your amended return and issue any additional refund you're entitled to receive, though amended returns take longer to process than original returns—typically up to 16 weeks.
Can I deduct contributions to a GoFundMe or similar crowdfunding campaign?
Generally, no. Charitable contribution deductions require donations to qualified organizations described in Internal Revenue Code section 170(c)—typically public charities, religious organizations, and certain other entities. Contributions to individuals, even those facing hardship, are not deductible. The crowdfunding platform should indicate whether the recipient is a qualified charity. Donations to individuals might be gifts, but personal gifts are not tax-deductible.
What's the difference between PMI and mortgage insurance premiums?
Private mortgage insurance (PMI) and mortgage insurance premiums refer to the same thing—insurance you pay when your down payment is less than 20 percent. For 2022, the special deduction for qualified mortgage insurance premiums expired for tax years beginning after December 31, 2021, meaning you cannot deduct these premiums on your 2022 Schedule A. This provision had been extended several times in prior years but was not renewed for 2022.
