Form 1040 Schedule A: Itemized Deductions (2013)
What Form 1040 Schedule A Is For
Schedule A (Form 1040) is the form you use to claim itemized deductions on your federal income tax return. Instead of taking the standard deduction—a fixed dollar amount based on your filing status—Schedule A lets you add up specific expenses you paid during the year and deduct them from your taxable income. In most cases, you'll pay less in federal income tax if you choose whichever option gives you the larger deduction.
The form covers seven main categories of expenses: medical and dental expenses, taxes you paid, interest you paid, gifts to charity, casualty and theft losses, job expenses and certain miscellaneous deductions, and other miscellaneous deductions. By itemizing, you're essentially telling the IRS, ""Here are all my qualifying expenses, which should reduce my taxable income more than the standard deduction would.""
For 2013, the standard deductions were $12,200 for married couples filing jointly, $8,950 for heads of household, and $6,100 for single filers and married persons filing separately. If your itemized deductions add up to more than these amounts, Schedule A can save you money.
When You'd Use Form 1040 Schedule A
Including Late or Amended Returns
You would file Schedule A with your original Form 1040 by the tax deadline, which for 2013 returns was typically April 15, 2014. However, life doesn't always run on the IRS's schedule, and there are situations where you might need to file Schedule A later.
If you initially filed your 2013 return taking the standard deduction but later realized your itemized deductions were actually higher, you can file an amended return using Form 1040-X. Generally, you have three years from the date you filed your original return or two years from the date you paid the tax (whichever is later) to file an amended return and claim a refund. For most 2013 returns filed on time in April 2014, this meant you had until April 2017 to amend.
You might also use Schedule A on an amended return if you discover additional deductible expenses you forgot to include, receive corrected tax documents showing different amounts, or need to correct errors in your original calculations. When amending, you'll attach a new Schedule A to Form 1040-X showing the corrected itemized deductions.
Key Rules or Details for 2013
Several important rules govern what you can and cannot deduct on Schedule A. First, you must have actually paid the expenses in 2013—you can't deduct expenses you merely owe or plan to pay. You also can't deduct expenses that were reimbursed by insurance or your employer unless that reimbursement was included as taxable income on your W-2.
For medical and dental expenses, a significant rule changed in 2013. You can only deduct the portion of expenses that exceeds 10% of your adjusted gross income (the amount on Form 1040, line 38). However, if either you or your spouse was born before January 2, 1949, you got to use the older, more generous threshold of 7.5%. This meant older taxpayers could deduct more of their medical expenses.
Home mortgage interest deductions come with limits. If you took out mortgages after October 13, 1987, your deduction may be capped. For mortgages used to buy, build, or improve your home, you can deduct interest on up to $1 million in mortgage debt ($500,000 if married filing separately). For home equity loans used for other purposes, the limit is $100,000 ($50,000 if married filing separately).
Charitable contributions require proper documentation. For any cash donation of $250 or more, you must have a written acknowledgment from the charity. For property donations exceeding $500, you must attach Form 8283 to your return. And importantly, you can only deduct contributions to qualified organizations—donations to individuals, political organizations, or raffle tickets don't count.
Another crucial rule: if your adjusted gross income exceeded $150,000, your total itemized deductions might be reduced. This is called the ""itemized deductions limitation"" or ""Pease limitation,"" which returned in 2013 after being suspended for several years.
Step-by-Step (High Level)
Filing Schedule A involves working through each category of deductions systematically. Start by gathering all your records: medical receipts, mortgage interest statements (Form 1098), property tax bills, charitable donation receipts, and other relevant documents.
Medical and Dental Expenses
Begin with medical and dental expenses on lines 1-4. Add up all qualifying expenses, subtract any reimbursements you received, and enter the total on line 1. On line 2, enter your adjusted gross income from Form 1040, line 38. Multiply this by either 10% or 7.5% (depending on your birth date) and enter the result on line 3. Subtract line 3 from line 1 to get your deductible medical expenses on line 4.
Taxes You Paid
Move to taxes you paid on lines 5-9. You must choose between deducting state and local income taxes OR general sales taxes—you can't deduct both. Check the appropriate box on line 5 and enter the amount. Add your real estate taxes on line 6, personal property taxes on line 7, and any other deductible taxes on line 8. Total these on line 9.
Interest You Paid
For interest paid (lines 10-15), enter mortgage interest from Form 1098 on line 10. If you paid mortgage interest not reported on Form 1098, enter it on line 11 with the recipient's information. Add points not on Form 1098 (line 12), mortgage insurance premiums (line 13), and investment interest (line 14), then total on line 15.
Gifts to Charity
List charitable gifts on lines 16-19. Separate cash donations (line 16) from property donations (line 17). Add any carryover from prior years (line 18) and total on line 19.
Casualty, Theft, Job, and Miscellaneous Deductions
Report casualty and theft losses on line 20 using Form 4684. For job expenses and certain miscellaneous deductions (lines 21-27), list unreimbursed employee expenses, tax preparation fees, and other qualifying expenses. Only the amount exceeding 2% of your adjusted gross income is deductible.
Final Totals and Limitation
Finally, add all your itemized deductions. If your AGI is under $150,000, simply total lines 4, 9, 15, 19, 20, 27, and 28 and enter on line 29. If your AGI exceeds $150,000, you'll need to use the Itemized Deductions Worksheet to calculate any reduction in your deductions.
Common Mistakes and How to Avoid Them
Double-Dipping Deductions
One of the most frequent errors is double-dipping—claiming the same expense both on Schedule A and somewhere else on your return. Don't deduct expenses on Schedule A that you've already deducted on Schedule C (business), Schedule E (rental property), or Form 1040 itself.
Real Estate Tax Bill Errors
Many taxpayers incorrectly deduct the entire real estate tax bill without checking what's actually included. Often property tax bills contain non-deductible charges like trash collection fees, water usage charges, or special assessments for improvements. Always review your tax bill carefully and deduct only the portion that represents actual property taxes based on your home's value.
Medical Expense Threshold and Reimbursement Issues
Medical expense mistakes are common, particularly with the 10% threshold. Remember to reduce your medical expenses by any reimbursements received in 2013, even if they reimbursed you for expenses from a prior year. Also, don't include insurance premiums paid through a cafeteria plan at work with pre-tax dollars—these aren't deductible because you didn't pay taxes on that money.
Charitable Contribution Documentation
For charitable contributions, failing to get proper documentation is a critical error. If you donated $250 or more to any single charity, you absolutely must have a written acknowledgment from that organization obtained by the date you file your return. Without it, the IRS will disallow the deduction. Similarly, property donations over $500 require Form 8283, and donations over $5,000 typically need a qualified appraisal.
Non-Deductible Taxes
Many people mistakenly try to deduct sales taxes on business items or taxes they paid on behalf of someone else. These aren't allowed on Schedule A. Similarly, you can't deduct federal income taxes, social security taxes, or Medicare taxes withheld from your paycheck.
Missing the 7.5% Medical Threshold Option
Another common mistake is forgetting to check the birth date box when claiming the 7.5% medical expense threshold. If you're eligible for this lower threshold because you or your spouse was born before January 2, 1949, make sure to check the appropriate box on Form 1040, line 39a.
What Happens After You File
After you file your return with Schedule A attached, the IRS processes it along with millions of other returns. Your itemized deductions are entered into their system, and your tax liability is calculated based on the figures you provided. If you're due a refund, it will be processed; if you owe additional tax, you should pay it by the deadline to avoid penalties and interest.
You don't need to send supporting documentation with your return—receipts, acknowledgment letters, Forms 1098, and other records stay with you. However, you must keep these records for at least three years from the date you filed your return (or the due date, whichever is later) in case the IRS selects your return for examination. For some items, like property basis records, you should keep documentation even longer.
The IRS may review your return through their automated systems, which check for mathematical errors, mismatches with third-party information (like Forms W-2 and 1098), and statistical anomalies. If something looks unusual compared to other taxpayers in your income bracket, your return might be selected for further review.
If the IRS questions your deductions, they'll send you a notice requesting documentation. This isn't necessarily an audit—often it's just a correspondence requesting proof of specific deductions. You'll respond by mailing copies (never originals) of your supporting documents. If you can't provide adequate documentation, the IRS may disallow some or all of the questioned deductions and assess additional tax, penalties, and interest.
For certain deductions, failure to maintain proper records can result in specific penalties. For example, if you don't provide the required information for mortgage interest payments to an individual (not a bank), you could face a $50 penalty.
FAQs
Should I itemize or take the standard deduction?
You should itemize if your total itemized deductions exceed your standard deduction. For 2013, this meant more than $12,200 for married couples filing jointly, $8,950 for heads of household, or $6,100 for single filers. Calculate both ways and choose whichever gives you the lower tax bill. Generally, you're more likely to benefit from itemizing if you own a home, have high medical expenses, or make substantial charitable contributions.
Can I deduct medical expenses paid for my elderly parent who doesn't live with me?
Yes, if you provided more than half of your parent's support, you can include medical expenses you paid for them even if you can't claim them as a dependent due to their income level. The key is that you must have actually paid the expenses—you can't deduct amounts your parent paid themselves or that were covered by Medicare or insurance.
What if I lived in multiple states during 2013?
You can still deduct state and local taxes, but you'll need to prorate the amounts if you use the optional sales tax tables. Multiply the table amount for each state by a fraction: the number of days you lived there divided by 365. Add the prorated amounts together to get your total deduction. The same principle applies if you lived in multiple localities with different local tax rates.
Can I deduct mortgage interest on both my primary home and vacation home?
Yes, you can deduct mortgage interest on up to two homes—your primary residence and one second home. However, the mortgage debt limits still apply: $1 million total for purchase mortgages and $100,000 for home equity debt across both properties. Both homes must provide basic living accommodations including sleeping space, a toilet, and cooking facilities.
Do I need to mail receipts and documentation with my tax return?
No, keep your documentation for your own records but don't send it with your return unless specifically requested. The IRS wants you to retain receipts, canceled checks, acknowledgment letters, Forms 1098, medical bills, property tax statements, and other supporting documents. These must be available if the IRS later questions your deductions. For charitable contributions of $250 or more, you must have the written acknowledgment by the date you file, but you keep it—don't mail it in.
What happens if I forgot to include a deductible expense on my original return?
You can file an amended return using Form 1040-X within three years of filing your original return (or two years from when you paid the tax, whichever is later). Attach a new Schedule A showing all your itemized deductions including the forgotten expense. Explain the change in Part III of Form 1040-X. If the additional deduction results in a refund, the IRS will process it, though amended returns take longer—typically up to 16 weeks versus 21 days or less for electronic original returns.
Can I deduct the full amount shown on my Form 1098 for mortgage interest?
Usually yes, but not always. If you received a mortgage credit certificate and are claiming the mortgage interest credit on Form 8396, you must reduce your mortgage interest deduction by the credit amount. Also, if your mortgage was used partly for non-deductible purposes, you may need to allocate the interest. And if you refinanced and paid points, those points generally must be deducted over the life of the loan rather than all in one year, so the Form 1098 amount might need adjustment.
All information in this guide is sourced from official IRS publications including the 2013 Schedule A Instructions and 2013 Form 1040 Schedule A.
