What Can Be Itemized on Federal Taxes?

Taxpayers decide how to calculate their taxes. They can choose to itemize their deductions or to take the standard federal deduction. Taxpayers should itemize if the total of itemized deductions is more than the standard deduction.

Tax Forms to Use

To itemize deductions, taxpayers must use the 1040 long form and Schedules A and B.

Personal Deductions

Some examples of itemized deductions are charitable contributions, certain taxes such as real estate taxes, casualty and theft losses not covered by regular insurance, mortgage points paid if you purchased a home, mortgage interest and educational expenses.

Medical and Dental Deductions

Save all receipts and invoices for medical and dental procedures. Charges not covered by insurance and travel expenses for treatment can be deducted.

Home Business Deductions

A number of business deductions can be taken for a designated sole proprietorship. A full list of the allowed deductions can be found on Schedule C, which is added to the 1040 form. Some of the deducted items include business travel, utilities and part of the home mortgage.

Review Deductions Yearly

Tax codes and laws can change every year. If you choose to itemize your deductions, review the current tax laws since the requirements for some deductions might have changed.

References

• H & R Block: Tax Tips
• Internal Revenue Service: Itemized Deductions
• MSN Money: 10 Big Deductions

Resources

• Internal Revenue Service: Tax Topics