Living a normal life costs a good deal of money. Fortunately, some of that money you spend is tax deductible. Many taxpayers simply choose to take their standard deduction when filing, and they may be cheating themselves out of a fat refund check. Itemizing your deductions on a Schedule A often proves very beneficial for taxpayers. This page offers IRS Instructions on the Schedule A.
IRS Instructions on Schedule A BenefitsNot everyone benefits from submitting a Schedule A with their Federal tax return. The IRS instructions for Schedule A state that the best way to find out if you should submit a Schedule A is to fill it out and compare the total deduction on that form with what the standard deduction is for you. If your standard deduction is more than the deduction on the Schedule A form, you should choose the standard deduction.
IRS Instructions on Schedule A DeductionsBelow is a list of some of the itemized deductions you can claim and what lines they belong to on your Schedule A.
- Line 4: Health Care Expenses.
- Line 9: State and local income, sales, and real estate taxes.
- Lines 10 & 11: Interest on your home mortgage.
- Lines 14: Interest on your investments.
- Line 19: Cash or fair market value contributions to charities and churches.
- Line 20: Personal losses from theft, casualty, or natural disaster.
- Line 27: Job-related expenses; including education, professional development, and travel.
On the Schedule A, you will see that Line 28 is for "Other Miscellaneous Deductions." The IRS Instructions for Schedule A lumps a wide variety of deductions in this category, ranging from gambling losses to amortizable bond premium on bonds from before 1986. If you do not see your deduction on other lines. it may fall into this category.
Once you have itemized the amount of each deduction in each line, add the amounts from lines 4 through 28 and enter the total into line 29. What you see in Line 29 is the total deduction you would get by submitting your itemized deductions. If your itemized deductions add up to a greater amount than your standard deduction would be, the IRS Instructions for Schedule A state that you also need to put that amount onto Line 40 of your Form 1040.
The IRS instructions for Schedule A state that you should be prepared to back up any deductions you itemize with legitimate documentation. This means keeping gasoline receipts, prescriptions, etc. If you are uncertain of what you can legally claim as a deduction, you should contact a tax professional for further IRS instructions for Schedule A.
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