Schedule A - Itemized Deductions - IRS Tax Forms

Schedule A – Itemized DeductionsTaxSlayer Navigation: Federal Section Deductions Itemized Deductions Medical and Dental ExpensesIf MFS and spouse itemizes, taxpayer mustalso itemize. Standard deduction can’t beused. It doesn’t matter which spouse filesfirst. Select “Use Standard or Itemized Deduction” then select the option “Must itemizebecause spouse itemized.”Select to enter medical expenses. Donot include any medical insuranceincluded in the Self-Employed HealthInsurance Deduction.Select to enter taxes not enteredelsewhere in the software.Schedule A Deductible and Nondeductible Medical ExpensesYou can include: BandagesBirth control pills prescribedby your doctorBody scanBraille booksBreast pump and suppliesCapital expenses forequipment or improvementsto your home neededfor medical care (seeWorksheet A, CapitalExpense Worksheet, in Pub.502)Diagnostic devicesExpenses of an organ donorEye surgery (to promote thecorrect function of the eye)Fertility enhancement,certain proceduresGuide dogs or other animalsaiding the blind, deaf, anddisabledHospital services fees (labwork, therapy, nursingservices, surgery, etc.)Lead-based paint removalLegal abortionLegal operation to preventhaving children such as avasectomy or tubal ligationLong-term care contracts,qualifiedMeals and lodging providedby a hospital during medicaltreatmentMedical services fees (fromdoctors, dentists, surgeons,specialists, and othermedical practitioners)Medicare Part D premiums Medical and hospitalinsurance premiumsNursing servicesOxygen equipment andoxygenPart of life-care fee paid toretirement home designatedfor medical carePhysical examinationPregnancy test kitPrescription medicines(prescribed by a doctor) andinsulinPsychiatric andpsychological treatmentSocial security tax, Medicaretax, FUTA, and stateemployment tax for workerproviding medical care (seeWages for nursing servicesbelow)Special items (artificial limbs,false teeth, eyeglasses,contact lenses, hearing aids,crutches, wheelchair, etc.)Special education formentally or physicallydisabled personsStop-smoking programsTransportation for neededmedical careTreatment at a drug oralcohol center (includesmeals and lodging providedby the center)Wages for nursing servicesWeight loss, certainexpenses for obesityYou can’t include: Baby sitting and childcareBottled waterContributions to ArcherMSAs (see Pub. 969)Diaper serviceExpenses for your generalhealth (even if followingyour doctor’s advice)such as——Health clubdues—Household help(even if recommended bya doctor)—Social activities,such as dancing orswimming lessons—Trip forgeneral health improvementFlexible spending accountreimbursements for medicalexpenses (if contributionswere on a pre-tax basis)Funeral, burial, or cremationexpensesHealth savings accountpayments for medicalexpensesOperation, treatment, ormedicine that is illegal underfederal or state lawLife insurance or incomeprotection policies, orpolicies providing paymentfor loss of life, limb, sight,etc.Maternity clothes Medical insurance includedin a car insurance policycovering all persons injuredin or by your carMedicine you buy without aprescriptionNursing care for a healthybabyPrescription drugs youbrought in (or orderedshipped) from anothercountry, in most casesNutritional supplements,vitamins, herbalsupplements, “naturalmedicines,” etc., unlessrecommended by a medicalpractitioner as a treatmentfor a specific medicalcondition diagnosed by aphysicianSurgery for purely cosmeticreasonsToothpaste, toiletries,cosmetics, etc.Teeth whiteningWeight-loss expenses notfor the treatment of thetreatment of obesity or otherdiseaseYou can’t include in medical expenses amountsyou pay for controlled substances that aren’t legalunder federal law, even if such substances arelegalized by state law.F-5

Schedule A - Itemized Deductions (continued)If taxpayer has medical insurancethrough the Marketplace, rememberto adjust the total premium after thePTC is calculated.To enter multipleexpenses of a singletype, click on the smallcalculator icon besidethe line. Enter the firstdescription, the amount,and Continue. Enter thenext. They will be totaledon the input line andcarry to Schedule A.Note: Medical and dental floor percentage is 10%. Some senior residences (nursing homes) have an amount in themonthly cost which is a medical expense. Taxpayers can include in medical expenses the cost of medical care in a nursing home, home for the aged or similar institution. This includes the cost of meals and lodging if the principal reason forbeing there is to get medical care.F-6

Schedule A - Taxes You PaidThe itemized deduction for state and local taxes and sales and property taxes is limited to a combined, total deduction of 10,000 ( 5,000 if Married Filing Separately).Enter amount paid with last year’s statereturn and any other state and local incometax payments not entered elsewhere.Click here to open the sales tax worksheet.See the next page for details.Enter real estate taxes that are reported onForm 1098 with the mortgage interest on themortgage interest screen.Enter vehicle license registration feeif based on value (ad valorem) underPersonal Property taxes.If taxpayers purchased or sold a home in the tax year, they may not beable to deduct all Real Estate Taxes. See Publication 17, “Real EstateTaxes” section, for more information.Taxes you cannot deduct: utilities, fees/licenses (drivers, marriage, dog);assessments for improvements that increase property value; assessmentsfor services to the property (sewer, trash collection, etc.).F-7

Schedule A - Sales Tax DeductionIf the taxpayer has a large amount of nontaxable income,calculate their sales tax deduction using the IRS salestax deduction calculator. See the link to the IRS sales taxdeduction calculator at the bottom of the page. The calculator adds nontaxable income to AGI to give the taxpayer alarger sales tax deduction. Use the override button to enterthe amount calculated.If not using the override feature, enterthe ZIP code and number of days forTaxSlayer to calculate the deduction.Note: If using the override feature, leave all other fields on theSales Tax Deduction screen blank.Leave these blank if youwant the software to usethe default rates.If not using the override feature, enter salestax here for large items (such as a car) if thetaxpayer purchased any during the year.Link to the IRS sales taxdeduction calculator.F-8

Schedule A - Itemized Deductions (continued)Select for mortgage interest reportedon Form 1098. Enter amount fromForm 1098F, box 1 (and box 2, ifapplicable).See Tab EXT, Legislative Extenders forPrivate Mortgage Insurance (if extended)Note: The deduction for home equity debt is disallowed as a mortgage interest deduction unlessthe home equity debt was used to build, buy, orsubstantially improve the taxpayer’s qualifiedresidence.If there are multiple mortgages, makeadditional Schedule A Interest entries.For mortgages entered into after December 15,2017, the amount of interest you can deduct ison no more than 750,000 of debt used to buy,build, or substantially improve your principalhome and a second home ( 375,000 in the caseof married taxpayers filing separate tax returns)for tax years 2018 through 2025.Points from refinancing must be spread over thelife of the mortgage unless used to remodel (seesection in Publication 17, labeled “Points”). Enterloan origination fee from closing statement aspoints not reported on Form 1098 if not includedas points on Form 1098.F-9

Schedule A - Itemized Deductions (continued)Note: Enter amounts given by cash or check under Cash Giftsto Charity. The 30% & 60% refer to the percentage of your AGIthat can be deducted this year. See Publication 17 fordefinitions. Enter the value of noncash items(including miles (14 cents per mile) driven in service to acharity) donated under Noncash Gifts to Charity. Be careful tolist themseparately.If noncash contributions are greater than 500, Form 8283,Noncash Charitable Contributions must be completed and thisform is Out of Scope.Certain qualified contributions made for reliefefforts in disaster areas are not subject to the AGI limitation.See Publication 976, Disaster Relief.Note: Although you can’t deduct the value of yourservices given to a qualified organization, you may beable to deduct some volunteer expenses you pay in givingservices to a qualified organization. The amounts must be: Unreimbursed; Directly connected with the services; Expenses you had only because of theservices you gave; and Not personal, living, or family expenses.These types of donations are not deductible: political; country club/fraternal lodge; chambers of commerce; raffle,bingo, or lottery tickets; tuition; value of time/services; gifts to lobby groups; civic leagues, social clubs; labor unions,homeowners association dues.Note: Taxpayers who do not itemize deductions are able to deduct up to 300 of cash contributions to charitable organizations perreturn. Deductions are limited to 300 if single, head of household, or qualifying widow(er); 300 if married filing jointly; or 150 ifmarried filing separately.F-10

Schedule A - Miscellaneous DeductionsNote: No miscellaneous itemized deductions will be allowed for job expenses and certain miscellaneous deductions subject to the 2%limitation. These expenses may be deductible on state returns.Gambling losses and expensesincurred in gambling activities up to theamount of winnings are deducted here.You can’t deduct gambling losses thatare more than the taxpayers winnings.Nondeductible expenses: Commuting;home repair; rent; loss from sale ofhome; personal legal expenses;lost/misplaced cash or property; fines/penalties; safe deposit box rental; taxreturn preparation; investment fees andexpenses.F-11

tax deduction calculator. See the link to the IRS sales tax deduction calculator at the bottom of the page. The calcu-lator adds nontaxable income to AGI to give the taxpayer a larger sales tax deduction. Use the override button to enter the amount calculated. If not using the override feature, enter the ZIP code and number of days for