IRS Schedule A (Form 1040) (2017): Itemized Deductions

What Schedule A (Form 1040) Is For 

IRS Schedule A (Form 1040) (2017) lets you list certain expenses that may lower your taxable income. Instead of taking the standard deduction, taxpayers can itemize qualifying costs from the tax year to reduce what they owe. Standard itemized deductions include medical and dental expenses, state and local taxes, mortgage interest, charitable contributions, and other approved expenses.

Schedule A works with your main Form 1040 to show the IRS which deductions you claim. You should use it only if your total deductions exceed the standard deduction for 2017. This option can benefit taxpayers who made significant charitable donations, paid high property taxes, or had substantial medical bills during the year.

When You’d Use Schedule A (Including Late or Amended Filings)

You would use IRS Schedule A (Form 1040) (2017): Itemized Deductions when your qualifying expenses exceed the standard tax year deduction. This form helps reduce your taxable income by allowing you to claim specific deductions for medical costs, mortgage interest, and charitable donations that meet IRS rules.

When to File

• File Schedule A with your Form 1040 when your total itemized deductions exceed the standard deduction for 2017.
  
  
• It applies to taxpayers who paid significant medical bills, property taxes, or large charitable contributions to qualified charitable organizations.
  
  
• Itemizing can be especially helpful if your adjusted gross income is high or your deductible expenses are substantial.

If You Need to Amend

• You can file an amended return using Form 1040-X if you initially took the standard deduction but later discovered eligible deductions.
  
  
• Common reasons include finding additional charitable contributions, correcting mortgage interest statements, or providing proof of unreimbursed expenses.
  
  
• Refunds are generally available for up to three years from the original filing date, though amended returns may take longer to process.

Key Rules and Details for 2017

Several essential IRS Schedule A (Form 1040) (2017): Itemized Deductions rules applied to this tax year. Understanding these helps ensure your deductions are accurate and adequately supported.

• Medical and Dental Expenses: You could deduct only the portion that exceeded 7.5% of your adjusted gross income (AGI).
  
  
• State and Local Taxes (SALT): You could deduct either state income or sales taxes, but not both.
  
  
• Mortgage Interest: Interest on qualifying home loans and certain mortgage insurance premiums was deductible for 2017.
  
  
• Charitable Contributions: Donations to a qualified charitable organization were deductible up to 50% of AGI. Non-cash gifts were limited to their fair market value.
  
  
• Miscellaneous Deductions: Unreimbursed employee expenses and investment fees were deductible only when exceeding 2% of AGI.
  
  
• High-Income Phase-Out: Total itemized deductions were reduced once income passed certain thresholds.

Step-by-Step (High Level) 

1. Gather proof of expenses and organizations: Collect receipts for income tax deductions, family expenses that qualify, and donations to a religious organization, nonprofit organizations, community chest, civil defense organization, private foundations, a lodge system, or other religious organizations that are operated exclusively for charitable purposes, educational work, or to prevent cruelty.
   
   
2. Confirm eligibility and amounts: Deduct only the amount that is directly connected to the gift or service; note that volunteer services are not deductible, but certain costs of civil defense volunteers may qualify.
   
   
3. Complete the form accurately: Enter interest, dividend income, gifts to a foundation, and other allowable services and funds on a completed form following additional rules in the instructions.
   
   
4. File with your returns: Attach Schedule A to your original and federal tax returns, and kindly reflect any changes on your state tax returns if necessary.
   
   
5. Pay or claim: Arrange payment or credit, choose direct deposit for any refund, and be aware of additional tax if adjustments apply.
   
   
6. Submit and keep records: Electronically file or submit by mail, and keep copies for a reviewed audit trail.

Common Mistakes and How to Avoid Them 

Many taxpayers make simple errors when completing IRS Schedule A (Form 1040) (2017): Itemized Deductions, but most can be prevented with care and documentation.

• Forgetting AGI limits: Only deduct medical or miscellaneous expenses above the 7.5% and 2% thresholds of your adjusted gross income. To avoid this, use the IRS worksheet to calculate allowable amounts before filing.
  
  
• Including non-deductible items: Expenses such as cosmetic surgery, HOA fees, or family gifts do not qualify. For approved deductions, refer to IRS Publication 502 or 526.
  
  
• Double-counting expenses: Do not claim the same deduction on multiple forms, like Schedule C or Schedule A. Keep clear records of where each expense belongs.
  
  
• Missing receipts: Donations and large deductions require proof. Save receipts and acknowledgment letters from qualified charitable organizations for at least three years.

What Happens After You File

After you file your IRS Schedule A (Form 1040) (2017): Itemized Deductions, the IRS reviews your tax return to verify that each deduction meets the rules for that tax year. Most electronically filed returns are processed within 21 days, while mailed returns take 6–8 weeks. A refund is typically sent via direct deposit if you qualify for one. If the IRS finds errors, missing documentation, or incorrect figures, you may owe additional tax or receive a notice requesting proof of your deductions.

Keep all supporting records for at least three years, including receipts and letters from qualified charitable organizations. These documents may be needed if your return is reviewed or audited. If your state tax return also includes itemized deductions, double-check state-specific rules, since they may differ from federal requirements.

FAQs

What types of charitable contributions can I claim on Schedule A?

If you made charitable contributions to a qualified charitable organization in 2017, you can deduct them. These may include cash, checks, or non-cash gifts such as clothing or property, as long as you have proper documentation.

How do I know if a group is a qualified charitable organization?

You can confirm an organization’s eligibility using the IRS’s online search tool, Tax Exempt Organization Search. Only donations made to qualified nonprofits, religious groups, or educational institutions count toward your itemized deductions.

Can I file an amended return to add missed deductions?

If you forgot to include charitable donations or other deductible expenses, you can file an amended return using Form 1040-X. This allows you to correct your original tax return and possibly increase your refund or reduce your balance due.

What documentation do I need for a charitable donation?

You must keep a receipt, bank record, or written acknowledgment from the qualified charitable organization showing the date and amount of your gift. Non-cash items must also include their fair market value.

Will changes to my federal return affect my state tax return?

If you file an amended return federally using Form 1040-X, your state tax return may need to be updated. Check your state’s Department of Revenue website for guidance on submitting amendments.

‍