What the Form Is For

Schedule A (Form 1040) is the IRS form taxpayers use to claim itemized deductions when filing their federal income tax return. Instead of taking the standard deduction—a fixed dollar amount based on your filing status—Schedule A allows you to list specific eligible expenses you paid during the tax year and potentially reduce your taxable income by a larger amount.

The form covers six main categories of deductible expenses: medical and dental expenses, taxes you paid (state, local, and property taxes), interest you paid (primarily home mortgage interest), gifts to charity, casualty and theft losses, and job expenses and certain miscellaneous deductions. You should only use Schedule A if your total itemized deductions exceed your standard deduction amount.

For 2011, the standard deduction was:

• $5,800 for single filers
• $11,600 for married filing jointly
• $8,500 for head of household
• $5,800 for married filing separately

Filing Schedule A makes sense when you’ve had significant deductible expenses—such as substantial medical bills, high mortgage interest payments, large charitable donations, or high state taxes.

When You’d Use It (Including Late or Amended Returns)

You use Schedule A when filing your original 2011 Form 1040 if you determine that itemizing deductions will save you more in taxes than taking the standard deduction.

Filing Deadlines and Amending Returns

Most taxpayers filed by April 17, 2012. If you didn’t itemize originally but later realized you should have, you could file an amended return using Form 1040X with a completed Schedule A within three years of the original filing deadline (generally until April 15, 2015).

Reasons to Amend

• Forgot to include deductible medical expenses or mortgage interest
• Missed charitable donations
• Overestimated deductions or misunderstood income-based limitations

Executors may also need to amend returns for deceased taxpayers when new information becomes available.

Key Rules for 2011

Understanding the thresholds and limits that applied in 2011 helps ensure compliance and accuracy.

Medical and Dental Expenses

• Deduct only the portion exceeding 7.5% of AGI.
• Mileage rates: 19¢ per mile (Jan–Jun), 23.5¢ per mile (Jul–Dec).

Taxes You Paid

• Choose either state/local income taxes or sales taxes.
• You can also deduct real estate and personal property taxes based on value.

Interest You Paid

• Mortgage interest deductible up to $1,000,000 in acquisition debt ($500,000 if MFS).
• Home equity interest deductible up to $100,000 ($50,000 if MFS).
• Mortgage insurance premiums deductible but phased out for AGI > $100,000.

Gifts to Charity

• Requires proper receipts and acknowledgments.
• Cash and non-cash contributions limited by AGI percentages.
• Charitable mileage rate: 14¢ per mile.

Job Expenses and Miscellaneous Deductions

• Deductible only if exceeding 2% of AGI.
• Includes unreimbursed work expenses, tax prep fees, and investment costs.

Casualty and Theft Losses

• Each loss must exceed $100, and total losses deductible only beyond 10% of AGI.

Step-by-Step (High Level)

Completing Schedule A means working through each deduction category carefully.

Step 1: Gather Your Documentation

Collect Form 1098s, receipts, tax bills, charitable records, and medical documentation.

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

Only deduct amounts exceeding 7.5% of AGI. Non-deductible if below threshold.

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

Choose between income or sales taxes. Include property and personal taxes where applicable.

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

Include mortgage interest, points, insurance premiums, and investment interest.

Step 5: Record Gifts to Charity (Lines 16–19)

Separate cash and property donations, file Form 8283 if required, and total contributions.

Step 6: Calculate Job Expenses and Miscellaneous Deductions (Lines 21–27)

List qualifying expenses, apply 2% AGI limit, and compute the deductible portion.

Step 7: Include Other Miscellaneous Deductions (Line 28)

Add deductions not subject to the 2% floor (e.g., gambling losses up to winnings).

Step 8: Calculate Total Itemized Deductions (Line 29)

Sum all categories, compare to your standard deduction, and transfer the larger to Form 1040, Line 40.

Common Mistakes and How to Avoid Them

Mistake #1: Not Comparing to the Standard Deduction

Always check if itemizing gives you more benefit than the standard deduction.

Mistake #2: Ignoring AGI-Based Limitations

Medical and miscellaneous deductions have thresholds. Compute these before claiming.

Mistake #3: Double-Dipping Deductions

Avoid deducting the same expenses twice (e.g., self-employed insurance vs. medical deduction).

Mistake #4: Missing Documentation for Charitable Gifts

You must have receipts or acknowledgment letters for larger donations.

Mistake #5: Deducting Non-Qualifying Expenses

Verify eligible expenses using IRS Publications 502 and 529.

Mistake #6: Choosing the Wrong Tax Deduction Option

You can deduct either income or sales taxes—never both.

Mistake #7: Reporting Incorrect Mortgage Interest

Use exact Form 1098 data and include lender information for additional interest amounts.

What Happens After You File

Initial Processing

• IRS processing takes 6–8 weeks (paper) or ~21 days (e-file).
• Automated checks verify income and deduction accuracy.

Correspondence and Notices

If discrepancies arise, the IRS sends a notice requesting documentation. Respond promptly.

Audit Selection

Itemizing can increase audit likelihood, especially for large or unusual deductions.

Amended Returns

You can correct or add deductions with Form 1040X within three years of filing.

Record Retention

Keep all tax records for at least 3 years, and up to 7 years for real estate or capital assets.

FAQs

Q1: How do I know if I should itemize or take the standard deduction?

Compare your itemized total with the standard deduction for your filing status. Choose whichever results in lower taxable income.

Q2: Can I deduct medical expenses my insurance reimbursed?

No. Only unreimbursed expenses qualify. Reimbursements may be taxable if previously deducted.

Q3: What if my mortgage interest on Form 1098 is wrong?

Request a corrected form or attach an explanatory statement with proof of actual payments.

Q4: Are there limits on charitable deductions?

Yes, generally 50% of AGI for cash donations, 30% for certain property or private foundations.

Q5: Can I deduct job-related expenses as an employee?

Yes, for unreimbursed expenses exceeding 2% of AGI and directly related to your current job.

Q6: What happens if I deduct more than I’m entitled to?

You’ll owe the additional tax plus interest, and possibly penalties for negligence or fraud.

Q7: Can I amend my 2011 return if I forgot deductions?

Yes, with Form 1040X—but only within three years of the original filing (April 15, 2015, for most 2011 returns).

For More Information

This guide is based on IRS Schedule A Instructions (2011) and relevant IRS publications:

• Publication 501 — General filing information
• Publication 502 — Medical and Dental Expenses
• Publication 936 — Home Mortgage Interest Deduction
• Publication 526 — Charitable Contributions