2014 Instructions for Schedule A (Form 1040)
Checklist
Schedule A itemizes deductions for the 2014 tax year and requires comparison to the standard deduction before filing. Nonresidents cannot claim certain state and local deductions, and limitation thresholds for medical expenses, casualty losses, and charitable contributions apply based on 2014-specific adjusted gross income floors and phase-outs established in official IRS instructions. The Affordable Care Act shared responsibility payment applies for 2014, and medical expense deductions reflect the applicable 2014 AGI threshold. No stimulus reconciliation or Tax Cuts and Jobs Act provisions apply to this form in 2014.
Eligibility and Documentation Requirements
You must verify that you qualify as a United States citizen or resident alien for the entire 2014 tax year before claiming itemized deductions on Schedule A. Nonresidents cannot claim
Schedule A itemized deductions under IRS rules.
Gather all required documentation before beginning the filing process, including Form 1098 for mortgage interest and property taxes, charitable contribution receipts, medical and dental expense records, casualty or theft loss documentation, and state and local tax payment records.
These documents provide the foundation for accurate reporting and support your deductions if the IRS requests verification. All IRS forms must be completed accurately and attached to your return when required by specific deduction categories.
Medical and Dental Expenses: Threshold Rules
Calculate your total 2014 qualified medical expenses and report them on Line 1 of Schedule A.
Unreimbursed medical expenses become deductible only to the extent they exceed 10 percent of your adjusted gross income from Form 1040, line 38. If either you or your spouse was born before January 2, 1950, you qualify for a lower threshold of 7.5 percent of AGI.
This lower threshold for taxpayers age 65 or older represents a temporary exception that remained in effect through December 31, 2016. Subtract any insurance reimbursements or other payments you received from your total medical expenses before calculating the deduction.
Include insurance premiums for medical and dental care, but reduce them by any self-employed health insurance deduction claimed on Form 1040, line 29. You cannot deduct insurance
premiums paid with pretax dollars because those premiums do not appear in box 1 of your Form
W-2.
Qualified medical expenses include prescription medicines, insulin, doctor visits, hospital care, medical equipment, and qualified long-term care services. The cost of diet food, cosmetic surgery, and nonprescription medicines other than insulin cannot be deducted. Taxpayers must calculate their federal adjusted gross income accurately to determine the proper threshold for unreimbursed medical expenses.
State, Local, and Real Estate Taxes
Report 2014 state and local income taxes on Line 5 of Schedule A, or you may elect to deduct state and local general sales taxes instead. You cannot deduct both income taxes and sales taxes in the same year. Real estate and personal property taxes appear on Line 6 and must be assessed uniformly at a like rate on all real property throughout your community.
Nonresident aliens report only taxes attributable to United States source income. Do not include itemized charges for specific services, such as trash collection or water usage, or for improvements that increase property value.
Personal property taxes qualify for a deduction on Line 7 only if they were based solely on value and imposed annually. An example includes the portion of vehicle registration fees based on the car's value rather than its weight. Understanding the distinction between deductible real estate and personal property taxes and nondeductible fees helps ensure accurate reporting on Form
1040 Schedule A.
Home Mortgage Interest Limitations
Enter mortgage interest and points reported on Form 1098 on Line 10 of Schedule A. For mortgages taken out after October 13, 1987, home mortgage interest is deductible only on the first one million dollars of acquisition indebtedness used to buy, build, or improve a home. The limit reduces to $500,000 if married filing separately. Interest on amounts over this limit cannot be deducted. Home equity loan interest is deductible only on the first $100,000 of debt, or
$50,000 if married filing separately.
A home mortgage is any loan secured by your primary or second home, including first mortgages, second mortgages, home equity loans, and refinanced mortgages. If you paid mortgage interest to an individual rather than a financial institution, enter that person's name,
identifying number, and address on the dotted lines next to Line 11. Proper completion of Form
1040 Schedule A requires accurate reporting of all mortgage interest amounts.
Investment Interest and Charitable Contributions
Report investment interest only to the extent it does not exceed 2014 net investment income as calculated on Schedule A instructions. Investment interest is interest paid on borrowed money allocable to property held for investment, excluding passive activities and securities that generate tax-exempt income. Complete and attach Form 4952 to calculate your deduction unless specific exceptions apply.
Enter 2014 cash and noncash charitable gifts on Lines 11 through 13 of Schedule A. You must attach Form 8283 if the total deduction claimed for all noncash charitable contributions exceeds
$500 for noncash donations over $5,000. Additional requirements apply, including obtaining a qualified appraisal. Keep all charitable contribution receipts and documentation to support your deductions. Gifts to charities can significantly reduce your taxable income when properly documented and reported on the appropriate IRS forms.
Casualty and Theft Losses: Two-Tier Limitation
Enter 2014 casualty and theft losses on Line 19 only after applying the two separate limitations required by IRS rules. First, reduce each separate casualty or theft loss by $100. Second, the total amount of all losses after the one-hundred-dollar reduction must exceed 10 percent of your adjusted gross income from Form 1040, line 38. Both limitations must be applied before claiming any deduction. Attach Form 4684 to document your casualty and theft losses and show your calculations.
Casualty losses result from damage, destruction, or loss of property from an identifiable event that is sudden, unexpected, or unusual. Examples include car accidents, earthquakes, fires, floods, government-ordered demolition, mine cave-ins, shipwrecks, sonic booms, storms, hurricanes, tornadoes, terrorist attacks, vandalism, and volcanic eruptions. Progressive deterioration does not qualify as a casualty loss.
Miscellaneous Itemized Deductions Subject to AGI Floor
Report miscellaneous itemized deductions subject to the 2 percent of AGI floor on Schedule A,
Lines 21 through 23. These expenses include unreimbursed employee business expenses, tax preparation fees, and other qualifying expenses. Line 26 calculates 2 percent of your adjusted
gross income from Form 1040, line 38. Line 27 shows your allowable deduction by subtracting
Line 26 from Line 24. You can deduct only the portion of these expenses that exceeds 2 percent of your AGI. Calculating federal adjusted gross income correctly ensures proper application of the 2 percent floor limitation.
Understanding Itemizing vs. Standard Deduction
Taxpayers face a critical decision when preparing their returns: choosing between itemizing and the standard deduction under IRS rules. The standard deduction provides a fixed amount based on filing status, while itemized deductions require detailed documentation and calculation of specific expenses. You must evaluate which method provides the greater tax benefit by totaling all allowable itemized deductions on Form 1040 Schedule A and comparing that amount to your standard deduction. Para contribuyentes hispanohablantes, las deducciones itemizadas ofrecen beneficios cuando los gastos calificados superan la deducción estándar correspondiente a su estado civil.
Filing Requirements and Procedures
Sign and date Schedule A before attaching it to your 2014 Form 1040. File a paper return according to the IRS Where to File page for the 2014 tax year, or use the electronic filing option if available. Compare your total itemized deductions to the standard deduction for your filing status. You cannot claim both itemized deductions and the standard deduction, so choose the option that provides the greater tax benefit. Gifts to charities and other qualifying expenses should be carefully reviewed to maximize your deduction within the allowable limits.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
