What Schedule A (Form 1040) Is For
IRS Schedule A (Form 1040) (2023) claims itemized deductions instead of taking the standard deduction. These deductions represent eligible expenses—such as medical and dental costs, state and local taxes, mortgage interest, and charitable contributions—that the Internal Revenue Service (IRS) allows to reduce your adjusted gross income (AGI).
For 2023, itemizing helps when your total deductions exceed the standard deduction amounts ($13,850 for single filers, $27,700 for married filing jointly, and $20,800 for head of household). Completing IRS Schedule A Form 1040 (2023) can lower your taxable income and reduce your tax bill if you qualify to itemize your deductions. Explore the IRS Form Help Center for guidance on essential forms that support itemized deductions, amended returns, and documentation requirements.
When You’d Use Schedule A (Late Filing or Amended Returns)
You’ll use Schedule A (Form 1040) when itemizing deductions, which offers more savings than the standard deduction. It also applies in special situations, including
- Filing your original return: Attach Schedule A if your itemized deductions—such as medical expenses, mortgage interest, or charitable donations—exceed the standard deduction.
- Filing late: Even if you miss the deadline, you can still include Schedule A to claim qualified deductible expenses. Penalties may apply, but reasonable cause can reduce them.
- Filing an amended return (Form 1040-X): Use this form to switch from the standard deduction to itemized deductions or correct missed eligible expenses within the three-year amendment window.
Review our IRS notice guide to understand the letters you may receive if your Schedule A deductions need clarification or additional proof.
Key Rules and Limits for the 2023 Tax Year
When completing Schedule A (Form 1040) for the 2023 tax year, keep these critical IRS rules and limits in mind:
- SALT cap: You may deduct up to $10,000 ($5,000 if married filing separately) for combined state and local taxes, including income, sales, and property taxes.
- Medical expense deduction: You can deduct only medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI).
- Mortgage interest deduction: Interest is deductible on up to $750,000 of qualifying home mortgage debt ($375,000 if married filing separately).
- Charitable contributions: You may deduct cash donations up to 60% of your AGI, as long as you maintain proper documentation.
- Mileage rates: For 2023, the IRS allows 22 cents per mile for medical travel and 14 cents per mile for charitable driving.
Use our collection process overview to learn how the IRS follows up when deduction amounts from your filing don’t match supporting records.
Step-by-Step (High Level)
- Medical and dental expenses (Lines 1–4): Calculate your total unreimbursed medical and dental costs. You can only deduct the portion that exceeds 7.5% of your adjusted gross income (AGI).
- Taxes you paid (Lines 5–7): Choose to deduct either state and local income or sales taxes. Include property and personal property taxes, but remember to apply the $10,000 SALT cap.
- Interest you paid (Lines 8–10): Enter the home mortgage interest listed on Form 1098 and include any qualifying investment interest.
- Charity gifts (Lines 11–14): Report cash, non-cash, and carryover donations. Keep receipts and acknowledgment letters for proof.
- Casualty and theft losses (Line 15): Deduct losses only from federally declared disasters using Form 4684.
- Other itemized deductions (Line 16): Include expenses such as gambling losses (up to your winnings) and other approved deductions.
- Total itemized deductions (Line 17): Add all sections and transfer the total to Form 1040, line 12.
Common Mistakes and How to Avoid Them
- Not comparing to the standard deduction: Some taxpayers itemize even when the standard deduction would save them more money. Avoid this by calculating both options before you file taxes. Explore our payment plan options if correcting your Schedule A results in a balance, and you need a manageable monthly payment plan.
- Ignoring the SALT cap: Many filers overstate state and local taxes beyond the $10,000 limit. Review your tax situation carefully and ensure the correct limitations are applied before submitting your tax form.
- Deducting ineligible expenses: Certain costs, like customs duties, personal bills, or student loan interest, are not deductible on Schedule A. Check which deductible expenses you can generally deduct according to IRS rules.
- Omitting documentation: Missing receipts for unreimbursed expenses or donations at fair market value can cause issues. Keep accurate records and consult a tax professional if you are unsure.
- Incorrectly reporting interest paid: Some filers confuse personal and mortgage interest. Ensure that all interest paid follows Form 1098 and complies with IRS requirements.
- Overlooking filing rules: Married couples filing jointly and those with a spouse itemizing separately must coordinate deductions. Self-employed filers should verify which business expenses can be claimed elsewhere on their tax return.
- Math or entry errors: Even minor mistakes can significantly impact tax results. Carefully review each entry and ensure you understand the distinction between taxable and nontaxable amounts outlined in the Jobs Act provisions.
Visit our penalty abatement resource if mistakes on your itemized deductions resulted in penalties and you would like the IRS to consider removing them.
What Happens After You File
After submitting your tax return with Schedule A, the Internal Revenue Service reviews your tax deductions and verifies supporting information. The agency’s e-file system, identified by a small locked padlock icon, ensures your data remains secure. Most electronic returns are processed within 21 days, while paper filings may take longer to process.
The IRS compares reported items, such as income tax payments, mortgage interest, and charitable donations, against third-party forms. You may receive a notice for clarification if adjustments or miscellaneous expenses appear inconsistent. Many taxpayers receive refunds directly by deposit, while others must pay additional amounts. A surviving spouse can still itemize deductions under applicable filing rules.
FAQs
Is it better to itemize or take the standard deduction?
It depends on which option reduces your taxable income more. If your total deductible expenses exceed the standard deduction, itemizing with Schedule A is usually more beneficial.
How does the mortgage interest deduction work on Schedule A?
You can claim a mortgage interest deduction for qualifying loans used to buy, build, or improve your home, as reported on Form 1098.
Can I deduct charitable contributions on my tax return?
You can claim charitable contributions to qualified organizations by keeping proper documentation and receipts.
Are local taxes included in itemized deductions?
Yes, local taxes and state income or sales taxes count toward the $10,000 state and local tax (SALT) deduction limit.
Do charitable donations need to be reported at fair market value?
You must report non-cash charitable donations at their fair market value, supported by written records or appraisals when required.
