What Are Itemized Deductions? - Schedule A
Every taxpayer can choose to take either the standard deduction or itemize deductions, usually whichever results in the least tax due. If you choose the latter option, use Schedule A to calculate your itemized deductions.
Included among itemized deductions are medical and dental expenses that exceeds 7.5% of your adjusted gross income. For further details refer to IRS Publication 502.
You can also deduct certain taxes, including state and local income taxes or state and local sales taxes, though not both, real estate taxes, and personal property taxes.
You may be able to deduct interest expenses as well, among them home mortgage interest, points not reported on Form 1098, mortgage insurance premiums, and investment interest.
Schedule A is also where you can take the deduction for contributions to qualified charitable organizations.
Casualty and theft losses are also included on Schedule A, including those caused by theft, vandalism, fire, storm, motor vehicle accident, corrosive drywall and money lost due to the bankruptcy or insolvency of a financial institution.
You can also deduct unreimbursed employee expenses, tax preparation fees, certain job expenses, and other miscellaneous outlays that exceed 2% of your adjusted gross income.