IRS Schedule A (Form 1040) (2020): Itemized Deductions

What Schedule A (Form 1040) Is For

Taxpayers use IRS Schedule A (Form 1040) (2020) to list itemized deductions—specific expenses that may reduce taxable income under IRS rules for the 2020 tax year. Instead of taking the standard deduction, taxpayers can claim certain costs such as medical and dental expenses, state and local taxes, home mortgage interest, charitable contributions, and casualty or theft losses. 

Using Schedule A helps you calculate whether itemizing saves more money than the standard deduction. Generally, it’s worthwhile when your total deductions exceed the standard deduction for your filing status, allowing you to lower your overall tax liability on your Form 1040.

When You’d Use Schedule A (Form 1040)

You’d use IRS Schedule A (Form 1040) (2020) when your itemized deductions provide a larger tax benefit than the standard deduction. Common filing situations include:

• Higher total deductions: When the total of your deductible expenses—such as medical costs, state and local taxes, and home mortgage interest—exceeds the standard deduction amount for your filing status.
  
  
• Filing an amended return: If you initially filed using the standard deduction but later discover missed deductions or charitable contributions, you can file an amended return (Form 1040-X). Get step-by-step guidance for correcting past filings or adding missed deductions in our federal return correction guide.
  
  
• 2020 standard deduction reference:
  
  
  • Single—$12,400
    
    
  • Married filing jointly—$24,800
    
    
  • Head of household—$18,650

Taxpayers generally have three years from the original filing date to amend their tax return and claim additional itemized deductions. If you filed jointly and your spouse claimed improper deductions, learn your options with our guide to Innocent Spouse Relief.

Key Rules and Details for 2020

When completing IRS Schedule A (Form 1040) (2020), it’s essential to understand the rules that applied to itemized deductions for that tax year:

• State and Local Tax (SALT) Limit: You could deduct a combined maximum of $10,000 ($5,000 if married filing separately) for state and local income, sales, and property taxes.
  
  
• Medical and Dental Expenses: Only the portion of qualified expenses exceeding 7.5% of your adjusted gross income (AGI) was deductible.
  
  
• Home Mortgage Interest Deduction: You could deduct interest paid on mortgage loans up to $750,000 ($375,000 if married filing separately), as long as the loan was used to buy, build, or improve your primary or second home. Learn how to verify your mortgage interest, property taxes, and other deductible expenses with an IRS account transcript.
  
  
• Charitable Contributions: Under temporary tax law relief measures, cash donations up to 100% of AGI could be deducted in 2020.
  
  
• Recordkeeping Requirements: Keep receipts, statements, and written acknowledgments from qualified organizations for all deductions. The IRS recommends saving these records for at least three years after filing your tax return.

Step-by-Step: How to Complete Schedule A (High Level)

1. Gather records: Collect receipts and statements for medical costs, property taxes, mortgage payments, and charitable donations. Include Form 1098 showing interest paid and any prepaid interest or mortgage points.
   
   
2. Confirm your home qualifies: Your main home—including a mobile home or house trailer with sleeping, cooking, and toilet facilities—may qualify for a mortgage interest deduction if the loan was used to buy, build, or improve the property.
   
   
3. Enter medical and tax information: Add eligible medical expenses and applicable state and local taxes. Apply the SALT limit and note that only a certain amount may be deductible.
   
   
4. Report mortgage interest: Record your mortgage interest from Form 1098. Fees for appraisals, notary services, or late payments are not deductible as interest.
   
   
5. Handle points and prepaid interest: Determine whether prepaid points can be deducted in the current year or must be amortized over the life of the loan. Contract dates and loan purposes may affect eligibility.
   
   
6. Record charitable gifts: Enter all charitable contribution amounts and retain acknowledgment letters. Keep cash and property donations listed separately for accurate reporting.
   
   
7. Compare totals: If your itemized deductions exceed the standard deduction (for you and, if filing jointly, your spouse), itemizing may reduce your taxable income and save money on your Form 1040.

Common Mistakes and How to Avoid Them

• Claiming both standard and itemized deductions: You must choose one method. Avoid it by comparing both totals in your tax software before submitting your return.
  
  
• Ignoring AGI limits for medical expenses: Only the costs exceeding 7.5% of your adjusted gross income are counted. Use a calculator or worksheet from IRS.gov to confirm your eligible amount.
  
  
• Exceeding the $10,000 SALT cap: Taxpayers often include too much in state and local tax deductions. Review the line limits carefully and consult the IRS Schedule A instructions.
  
  
• Deducting non-qualified mortgage interest: Interest is deductible only when the loan was used to buy, build, or improve your main home. Confirm with your lender how the funds were used before claiming.
  
  
• Missing proof for charitable contributions: Keep acknowledgment letters, canceled checks, or donation receipts for every gift—especially those over $250—to support your deductions if reviewed by the IRS.

What Happens After You File

After you file your IRS Schedule A (Form 1040) (2020), the IRS reviews your return to confirm that each claimed tax deduction meets filing requirements. Most e-filed returns are processed in about 21 days, while paper submissions can take 6–8 weeks. The IRS compares your reported mortgage interest, charitable contributions, and other deductions with data from lenders and organizations.

If errors or unusual claims appear—such as misclassified mortgage proceeds, improperly deducted points, or fees for a specific service like a late payment charge—the IRS may issue a notice or request clarification. Homeowners or small business filers should keep documentation showing the loan’s written binding contract, the type of debt, and how funds were used to verify that each deduction is legitimate. Understand how to handle IRS notices related to itemized deductions by reviewing our guide on responding to CP and LT notices.

FAQs

How can I claim a home mortgage interest deduction?

You can usually claim a mortgage interest deduction if your mortgage loan was used to buy, build, or improve your main home or second home, and the lender provided a Form 1098 showing the interest paid.

Is mortgage interest still tax-deductible for 2020?

Yes, for 2020, mortgage interest was tax-deductible on up to $750,000 in qualifying home loans ($375,000 if married filing separately).

Do charitable contributions count as itemized deductions?

Yes, charitable contributions and donations to qualified organizations can be included on Schedule A. Keep written proof for any charitable contribution over $250.

When should I choose the standard deduction instead of itemizing?

If your total itemized deductions—including home mortgage interest and charitable contributions—are less than your standard deduction, it’s usually better to take the standard amount.

Can I deduct mortgage payments or other housing costs?

Only the interest portion of your mortgage payment may qualify as a tax deduction. Principal, insurance, and utilities are not deductible unless part of a home office used for business purposes.