What is IRS Schedule A (Form 1040) (2013) for
IRS Schedule A (Form 1040) (2013) is designed for taxpayers who choose to claim itemized deductions instead of the standard deduction. It allows individuals to report actual qualifying expenses, such as medical and dental expenses, state and local taxes, home mortgage interest, charitable contributions, and other deductible expenses. The form helps reduce overall federal taxpayer liability by deducting the specific amounts paid for eligible expenses during the 2013 tax year rather than relying on a flat deduction amount.
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When You’d Use IRS Schedule A (Form 1040) (2013)
You would use Schedule A when your total itemized deductions are greater than your standard deduction for your filing status. Below are the primary situations where filing this form applies:
- Original 2013 filing: You would attach Schedule A to your Form 1040 if your total deductible expenses, such as medical or dental expenses, real estate taxes, or charitable contributions, exceeded the standard deduction amount.
- Amended returns: You would use Form 1040X to amend a prior filing if you realized that itemizing deductions offered greater tax savings than taking the standard deduction.
- Married filing separately: Both spouses must agree to itemize if one does, ensuring consistent reporting of state and local income taxes, sales taxes, and other local taxes paid.
- Supporting dependents: You may itemize if you paid medical and dental care expenses for a parent or dependent, even if that person does not qualify as a dependent on your return.
- Residents of high-tax states: You may benefit from filing Schedule A if you live in a state with substantial state and local taxes, property taxes, or local government services fees.
Key Rules or Details for the 2013 Tax Year
The 2013 tax year introduced specific rules affecting how itemized deductions were calculated and applied under IRS Schedule A (Form 1040) (2013).
- Medical and Dental Expenses: Only expenses that exceeded 10 percent of your adjusted gross income (AGI) were deductible, while taxpayers born before January 2, 1949, could use the lower 7.5 percent threshold.
- High-income phase-out: If your AGI was above $300,000 for married couples filing jointly or $250,000 for single filers, your total itemized deductions were reduced by 3 percent of the amount exceeding the limit, capped at 80 percent of total deductions.
- Mortgage Interest Limits: You could deduct home mortgage interest on up to $1 million of home acquisition debt and $100,000 of home equity debt, as long as the funds were used to buy, build, or improve your primary or secondary residence.
- Charitable Contributions: You could deduct up to 30 percent of AGI for cash gifts to a charitable organization and up to 20 percent for donations of property valued at fair market value.
- State and Local Taxes: Taxpayers could deduct either state and local income taxes or general sales taxes, but not both, depending on which deduction provided greater savings.
If you need help calculating your AGI for deduction purposes, see our guide on how to find your AGI from last year.
Step-by-Step (High Level)
To properly complete IRS Schedule A (Form 1040) (2013), taxpayers should follow a structured process to ensure accuracy and maximize potential deductions.
- Gather Documentation: Collect receipts, property tax bills, mortgage statements, charitable contribution receipts, and other proof of deductible expenses.
- Calculate Medical and Dental Expenses: Add your total medical and dental care costs, then subtract 10 percent (or 7.5 percent for qualifying seniors) of your adjusted gross income to find your deductible amount.
- Report Taxes Paid: Include state and local taxes, sales tax, real estate taxes, and personal property taxes imposed by local governments for governmental purposes.
- Enter Interest Paid: Report home mortgage interest, investment interest, and other verified paid interest amounts, following the limits for loan proceeds and deducting mortgage interest eligibility.
- List Charitable Contributions: Record donations to qualified charitable organizations, including non-cash gifts measured by fair market value, and ensure you have written acknowledgments for contributions of $250 or more.
- Add Other Deductions: Enter any allowable casualty or theft losses, job-related expenses, or other itemized deductions that qualify under certain taxes or generation-skipping tax rules.
- Compare Totals: Calculate whether your total itemized deductions exceed the standard deduction; if they do, you will likely save money by itemizing rather than using the standard deduction.
If you have past years with unfiled federal returns, learn about your options and next steps here: unfiled federal returns.
Common Mistakes and How to Avoid Them
Taxpayers often make filing errors on IRS Schedule A (Form 1040) (2013) that can delay processing or reduce eligible deductions. Here are the most common mistakes and how to prevent them:
- Not comparing to the standard deduction: Always calculate both options to determine which one lowers your federal income taxes more; many taxpayers overlook the fact that the standard deduction may provide greater savings.
- Forgetting the 10 percent medical expense floor: Only deduct the portion of medical and dental expenses that exceeds 10 percent (or 7.5 percent for seniors) of your adjusted gross income.
- Including non-deductible expenses: Do not claim costs such as insurance premiums, federal taxes, or cosmetic procedures, since they are excluded from deductible expenses under the IRS rules.
- Lacking documentation for contributions: Keep written acknowledgments for charitable contributions over $250 and bank records for all cash donations to ensure compliance with IRS verification requirements.
- Deducting both income tax and sales tax: Choose only one option between state and local income taxes and general sales taxes; selecting both may result in an adjustment or denial by the IRS.
- Exceeding mortgage limits: Confirm that your deductible home mortgage interest claims do not surpass the $1 million cap on home acquisition debt or the $100,000 cap on home equity debt.
Before you file, review this checklist of documents to attach to your IRS return to avoid common mistakes.
What Happens After You File IRS Schedule A (Form 1040) (2013)
Once your return with Schedule A is submitted, the IRS verifies the accuracy of your reported deductions and compares them against forms such as mortgage statements and state and local taxes paid. The review process typically takes 6 to 8 weeks, during which the IRS checks for errors and verifies the completeness of documentation. If discrepancies arise, you may receive a notice requesting additional proof of deductions like charitable contributions or medical and dental care expenses.
Do you have questions or need help with itemized deductions? Start your free case review with our tax experts today.
FAQs
What is the primary purpose of IRS Schedule A (Form 1040) (2013)?
It allows taxpayers to claim itemized deductions for eligible deductible expenses, such as medical and dental expenses, charitable contributions, and state and local taxes, instead of taking the standard deduction, which helps lower total federal taxpayer liability.
Can I deduct both state and local income taxes and sales taxes from my federal tax return?
No, taxpayers must choose between state and local income taxes or general sales taxes, depending on which provides a larger deduction. Both cannot be claimed in the same tax year.
Are mortgage interest and property taxes fully deductible?
Yes, within IRS limits. You may deduct mortgage interest on qualifying home loans and include real estate taxes imposed by local governments for governmental purposes, but not fees like trash collection or local improvements.
How do high-income limits affect my deductions?
Suppose your adjusted gross income exceeds the 2013 threshold ($300,000 for married couples filing jointly). In that case, your itemized deductions are reduced by 3 percent of the amount exceeding the limit, up to a maximum reduction of 80 percent.
