Schedule A Itemized Deductions
Add Schedule A
There are two ways to add the Schedule A to your return.
Option 1.
Use the Search for a Form bar in the top left and search for "Schedule A".
Option 2.
Look for your Forms In Return listed on the left. Scroll down and select the "Federal" drop-down. Then, click "Deductions" and select the page applicable listed under the Federal Deductions section.
Beginning tax year 2018, the IRS has made changes to the Federal Schedule A:
Whats New:
Overall limitation on itemized deductions no longer applies.
There is no longer an overall limitation on itemized deductions based on your adjusted gross income; however, there may be other limitations that impact the amount of itemized deductions you can claim on Schedule A.
Medical and Dental Expenses:
Only the part of Medical/Dental expenses that exceeds 7.5% of your Federal AGI is deductible (All Taxpayers).
Taxes You Paid (State/Local/Foreign) :
There is a limit to the amount of taxes that can be reported. (The system automatically carries over the correct amount).
Married Filing Joint Filers, Head of Household, Qualified Widower - $10,000
Single, Married Filing Separately - $5,000
No deduction for Foreign Taxes Paid for Real Estate.
You can no longer deduct foreign taxes you paid on real estate.
Limitation on deduction for Home Mortgage Interest.
You may be able to deduct mortgage interest only on the first $750,000 ($375,000 if married filing separately) of indebtedness. Higher limitations apply if you are deducting mortgage interest from indebtedness incurred on or before December 15, 2017.
No deduction for Home Equity Loan Interest.
No matter when the indebtedness was incurred, you can no longer deduct the interest from a loan secured by your home to the extent the loan proceeds weren't used to buy, build, or improve your home.
No Miscellaneous Itemized Deductions allowed.
You can no longer claim any miscellaneous itemized deductions, including the deduction for unreimbursed job expenses. Miscellaneous itemized deductions are those deductions that would have been subject to the 2 percent of adjusted gross income limitation.
Limitation on the deduction for Casualty and Theft Losses
You can no longer deduct a personal casualty or theft loss unless the loss is from a federally declared disaster.
Higher limitation threshold for certain Charitable Contributions.
For most gifts by cash or check, the total amount of such contributions that can be deducted is now limited to 60% of your contributions base, instead of 50%. See Pub. 526 for more information
Expired deduction for Mortgage Insurance Premiums
Mortgage Insurance Premiums can no longer be included on the tax return. Congress did not extend this for tax year 2018.
Standard Mileage Rates.
The standard mileage rate allowed for operating expenses for a car when you use it for medical reasons increased to 18 cents a mile.
The 2018 rate for use of your vehicle to do volunteer work for certain charitable organizations remains at 14 cents a mile
Important:
The following information is applicable for Tax Years 2017 and earlier:
Medical and Dental Expenses
- Health Insurance Premiums
- Prescription Costs/Co-Pays
- Only the part of Medical/Dental expenses that exceeds
10% of your Federal AGI is deductible. 7.5% if 65 or older.
Taxes You Paid (State/Local/Foreign)
- Income Taxes
- Real Estate Taxes
- Personal Property Taxes
- General Sales Tax
- You can elect Income Taxes OR General Sales Taxes (You cannot deduct both)
Interest You Paid
Form 1098 Mortgage Interest Statement
- Home Mortgage Interest
- Home Mortgage Points
- Home Mortgage Insurance Premiums - Expired 12/31/16.
Investment Interest
- Form 4952 Investment Interest Expense Deduction
- Schedule K1 Investment Income/Interest/Expenses
Charitable Contributions
- Cash/Checks
- Noncash Donations (clothes, furniture, etc.)
- Form 8283 will attach depending on entries
Volunteer Work
Unreimbursed Employee Expenses (Form 2106)
- Work Uniforms
- Protective Gear (hard hat, gloves, etc.)
- Union Dues/Fees
Miscellaneous Deductions
- Tax Preparation Fees
- Legal/Accounting Fees
- Custodial Fees
Other Miscellaneous Deductions
- Gambling Losses;up to winnings included in income.
- Schedule K-1 Portfolio Income
Casualty, Disaster & Theft Losses Including Federally Declared Disaster Areas
- Form 4684 Casualties & Thefts
Charitable Contributions
IMPORTANT
No - By default the system will carryover the larger deduction (Standard/Itemized).
Yes - Only uses the Itemized Deduction. The Standard Deduction will not be checked by system.
Elect to Itemize
Click the pencil to open page:
"Yes" forces the Itemized Deduction to carryover.
MFS filers required to Itemize because the spouse itemized deductions on their return.
All other taxpayers that are choosing to take the Itemized Deduction.