You’ve probably heard of people claiming deductions for their taxes. But where exactly do you put those deductions when you file your taxes? Individuals who file their Form 1040 will need to fill out Schedule A, and the form is less intimidating than it sounds. For more information on HOW to calculate certain deductions, check out our articles on those deductions that are linked in this article.
Schedule A Breakdown
The form can be found on the IRS website in a fillable format. The form itself is broken down into major categories of itemized deductions with information on any needed additional forms and calculations. The major categories in order:
- Medical Expenses
- Taxes that you paid (such as to states and other municipalities)
- Interest You Paid (such as the Home Mortgage Interest)
- Charitable Contributions
- Casualty and Theft Losses (changed a lot due to TCJA)
- “Other” Itemized Deductions (for example, losses from a business partnership)
The last section tallies up all the claimed itemized deductions and the final line is a confirmation that you are electing to itemize deductions even if it may be less than the standard deduction, in case you may be inclined to do so.
Overall, the form itself is straightforward and only a single page. The calculation of certain itemized deductions may require some extra work and recordkeeping. Most individuals opt to do it on their own, but individuals with more complex accounting issues may require some assistance, especially business owners. Which is where we at MiklosCPA come in. MiklosCPA is a California-based accounting firm that has helped many small business owners with their accounting and tax needs through our “virtual office” team. Contact us to learn more of our services and follow us on our social media for future updates and other good-to-know postings!