Understanding Schedule A (Form 1040) doesn't have to be overwhelming. This guide breaks down everything you need to know about itemizing deductions for your 2014 tax return using authoritative information from IRS.gov.

What the Form Is For

Schedule A (Form 1040) is your ticket to potentially reducing your tax bill by claiming itemized deductions instead of the standard deduction. Think of it as a detailed list of specific expenses the IRS allows you to subtract from your taxable income. The form lets you deduct various qualifying expenses including medical and dental costs, state and local taxes, mortgage interest, charitable donations, casualty losses, and certain miscellaneous expenses.

Here's the key decision: You'll only use Schedule A if your total itemized deductions exceed your standard deduction amount. For 2014, according to IRS Publication 501, the standard deduction was:

• $6,200 for single filers
• $12,400 for married couples filing jointly
• $9,100 for heads of household
• $6,200 for married filing separately

In most cases, your federal income tax will be lower if you take whichever option—itemized or standard—gives you the bigger deduction. If itemizing saves you more money, Schedule A is the form you'll need to attach to your Form 1040.

The form is divided into seven main categories:

1. Medical and dental expenses
2. Taxes you paid
3. Interest you paid
4. Gifts to charity
5. Casualty and theft losses
6. Job expenses and certain miscellaneous deductions
7. Other miscellaneous deductions

Each section has specific rules about what qualifies and how much you can deduct.

When You'd Use It (Late/Amended Filing)

Most taxpayers filed their 2014 returns by April 15, 2015. However, life happens, and you may need to file Schedule A later than originally planned for several reasons.

Late Filing

If you missed the April 2015 deadline entirely, you should file your 2014 return as soon as possible, including Schedule A if your itemized deductions exceed your standard deduction. The IRS can still process late returns, though you may face penalties and interest on any unpaid taxes. According to IRS information:

• The failure-to-file penalty is typically 5% of unpaid taxes per month (up to 25% maximum).
• Failure-to-pay penalties are 0.5% per month.

Amended Returns

Perhaps you originally took the standard deduction but later realized your itemized deductions were actually higher. Or maybe you forgot to include significant deductible expenses. In these situations, you'd file Form 1040X (Amended U.S. Individual Income Tax Return) with an attached Schedule A showing your corrected itemized deductions.

According to IRS guidelines, you generally 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 amendment claiming a refund.

Example: For 2014 returns filed on time in April 2015, this typically means you'd have until April 2018 to amend.

Common Reasons to Amend

• Forgotten charitable contributions
• Missed medical expenses
• Underreported state taxes paid
• Corrected mortgage interest after receiving a revised Form 1098

Key Rules for 2014

Understanding the specific rules for 2014 helps you maximize your deductions while staying compliant. Here are the critical thresholds and limitations.

Medical and Dental Expenses

You could generally only deduct the portion of medical and dental expenses exceeding 10% of your AGI. However, if either you or your spouse was born before January 2, 1950 (age 65 or older), you only needed to exceed 7.5% of AGI.

Itemized Deduction Limitation

High-income taxpayers faced a phaseout if AGI exceeded $152,525 ($305,050 for married filing jointly). Use the Itemized Deductions Worksheet to calculate reductions.

State and Local Taxes

You had to choose between:

• Deducting state/local income taxes, or
• Deducting general sales taxes (not both).

Mortgage Interest Limits

Interest was deductible on acquisition debt up to $1 million ($500,000 if married filing separately) and home equity debt up to $100,000 ($50,000 if married filing separately).

Mortgage Insurance Premiums

You could deduct qualified mortgage insurance premiums, phased out for AGIs over $109,000 ($54,500 if married filing separately).

Standard Mileage Rates

• Medical purposes: 23.5¢ per mile
• Charitable purposes: 14¢ per mile

Miscellaneous Deductions

Unreimbursed employee expenses, tax prep fees, and investment expenses were deductible beyond 2% of AGI.

Step-by-Step Guide (High Level)

Step 1: Gather Your Documentation

Collect all relevant forms and receipts (medical bills, Form 1098, tax statements, charitable receipts, etc.).

Step 2: Calculate Medical and Dental Expenses (Lines 1–4)

Enter total unreimbursed medical expenses, apply the AGI threshold, and subtract to find deductible amount.

Step 3: Report Taxes You Paid (Lines 5–9)

Choose between income or sales taxes. Add real estate, personal property, and other taxes.

Step 4: Calculate Interest You Paid (Lines 10–15)

Include mortgage interest (Form 1098), other interest, points, and investment interest.

Step 5: List Charitable Contributions (Lines 16–19)

List cash and non-cash donations; attach Form 8283 if over $500.

Step 6: Record Other Deductions (Lines 20–28)

Include casualty/theft losses, job expenses, tax prep fees, and miscellaneous items.

Step 7: Calculate Your Total Deduction (Lines 29–30)

Add all lines and check AGI-based limitations using the worksheet if required.

Common Mistakes and How to Avoid Them

Mistake 1: Forgetting the AGI Thresholds

Always apply the 10% (or 7.5%) and 2% AGI floors before listing deductions.

Mistake 2: Including Reimbursed Expenses

Do not include any expenses reimbursed by employers or insurers.

Mistake 3: Deducting Both Income and Sales Taxes

Only one can be claimed—choose the higher of the two.

Mistake 4: Missing Mortgage Interest Recipient Details

Provide the lender’s name, address, and identifying number when interest isn’t reported on Form 1098.

Mistake 5: Missing Charitable Contribution Documentation

Keep written acknowledgment for all $250+ donations and attach Form 8283 for non-cash gifts over $500.

Mistake 6: Including Non-Deductible Payments

Common non-deductible items include:

• Federal income taxes
• HOA fees
• Life insurance premiums
• Cosmetic surgery
• Funeral expenses

Mistake 7: Arithmetic Errors

Double-check all calculations and totals before submitting your return.

What Happens After You File

Processing Timeline

• Paper returns: 6–8 weeks
• E-filed returns: ~3 weeks

Track your refund using the “Where’s My Refund?” tool on IRS.gov.

Automated Checks

The IRS verifies math accuracy and compares data with W-2s, 1098s, etc.

Potential Correspondence

If discrepancies arise, you may receive an IRS notice requesting clarification.

Audit Considerations

High deductions relative to income (especially charitable or casualty losses) can trigger extra review.

Future Year Planning

Consider bunching deductions in alternating years if your itemized amounts hover near the standard deduction.

Record Retention

Keep all supporting documents for at least three years, or seven if claiming certain loss deductions.

FAQs

1. Should I itemize or take the standard deduction?

Itemize if your total deductions exceed the standard deduction for your filing status.

2. Can I deduct medical expenses my insurance didn’t cover?

Yes, only the portion exceeding 10% (or 7.5%) of AGI qualifies.

3. What if I forgot to include something on my Schedule A?

File an amended return (Form 1040X) within three years of the original filing.

4. Do I need receipts for everything on Schedule A?

Yes—retain receipts, statements, or acknowledgment letters for audit purposes.

5. Can I deduct property taxes and mortgage interest on a second home?

Yes, interest on one primary and one secondary residence is deductible.

6. What’s the deal with the high-income limitation on itemized deductions?

Your total itemized deductions may be reduced by 3% of the excess over AGI thresholds.

7. How do I handle shared mortgage interest payments with a co-borrower?

Each party deducts only their share, and details must be documented on line 11.

Source: Based on IRS Schedule A instructions and IRS publications for the 2014 tax year.
For updated information, consult IRS.gov or the most recent Schedule A instructions.