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How to read Schedule A (Itemized Deductions)?
Schedule A is used to itemize deductions that can reduce your taxable income. It includes sections for reporting state and local taxes, mortgage interest, gifts to charity, detailing eligible medical expenses and more. If the total itemized deductions exceed the standard deduction, the taxpayer can use Schedule A to claim a higher deduction.
Here are the most important sections of form Schedule A:
Line 5 : State and local taxes your have paid throughout the year (limited to $10,000):
- Income taxes paid or general sales tax
- State and local real estate taxes
- Personal property taxes (Taxes paid on vehicle licenses ie RTA tax)
Line 10 Mortgage interest paid throughout the year
Line 14 Gift to Charity
Line 17 Total itemized Deductions. If this amount is not on line 12 of the 1040 then it does not exceed the standard deduction.