IRS Form 1040 (Schedule A) – Itemized deductions can significantly lower your taxable income, potentially saving you money on your federal taxes. If you’re filing your 2025 tax return in 2026, IRS Form 1040 Schedule A is the key document for listing these deductions. This form allows taxpayers to detail expenses in categories like medical costs, taxes paid, mortgage interest, charitable contributions, and more, instead of taking the standard deduction. In this comprehensive guide, we’ll explain what Schedule A is, who should use it, how to fill it out, and recent changes for tax year 2025. Whether you’re a homeowner, donor to charities, or have high medical bills, understanding itemized deductions can help optimize your tax strategy.
For the official form, you can download the PDF directly from the IRS website: https://www.irs.gov/pub/irs-pdf/f1040sa.pdf.
What Is IRS Form 1040 Schedule A and Why Does It Matter?
IRS Form 1040 Schedule A, officially titled “Itemized Deductions,” is an attachment to Form 1040 or 1040-SR used to calculate and report deductions that exceed the standard deduction amount. Itemizing means listing specific eligible expenses rather than claiming a flat standard deduction, which can lead to a lower tax bill if your total itemized amount is higher.
The form is divided into several sections, each focusing on a different type of deduction:
- Medical and Dental Expenses: Lines 1–4
- Taxes You Paid: Lines 5–7
- Interest You Paid: Lines 8–10
- Gifts to Charity: Lines 11–14
- Casualty and Theft Losses: Line 15
- Other Itemized Deductions: Line 16
- Total Itemized Deductions: Lines 17–18
The total from line 17 transfers to Form 1040, line 12e, reducing your adjusted gross income (AGI). Note that if your itemized deductions are less than the standard deduction, you can still elect to itemize by checking the box on line 18, though this is rare.
For tax year 2025, key updates include an increased limit on state and local tax (SALT) deductions and new deductions claimed elsewhere (not on Schedule A), such as no tax on tips or overtime. Always consult IRS publications like Pub. 502 for medical expenses or Pub. 526 for charitable contributions for detailed rules.
Who Should Use Schedule A for Itemized Deductions?
Not everyone benefits from itemizing. You should use Schedule A if your total eligible deductions exceed the 2025 standard deduction amounts:
- Single or Married Filing Separately: $15,750
- Head of Household: $23,625
- Married Filing Jointly or Qualifying Surviving Spouse: $31,500
Additional amounts apply if you’re 65 or older or blind: $2,000 for single or head of household filers, and $1,600 per qualifying person for married filers. For dependents, the standard deduction is the greater of $1,350 or $450 plus earned income.
Common scenarios where itemizing makes sense include:
- High medical expenses exceeding 7.5% of your AGI
- Substantial state and local taxes paid
- Mortgage interest on a home loan
- Generous charitable donations
- Casualty losses from federally declared disasters
If you’re unsure, calculate both the standard and itemized amounts—whichever is larger will minimize your tax liability. Taxpayers with foreign income exclusions or certain forms like 2555 may face additional limits.
Key Changes to Itemized Deductions for Tax Year 2025
Tax laws evolve, and 2025 brings notable updates influenced by legislation like the One, Big, Beautiful Bill Act (OBBBA). Here’s what’s new:
- State and Local Tax (SALT) Deduction Limit Increased: The cap on deductions for state and local income, sales, and property taxes rises to $40,000 ($20,000 if married filing separately). This limit phases down if your modified AGI exceeds $500,000 ($250,000 if married filing separately) but won’t go below $10,000 ($5,000 if married filing separately).
- New Deductions Moved to Schedule 1-A: Four new deductions—no tax on tips (up to $25,000, phaseout over $150,000 AGI or $300,000 joint), no tax on overtime (up to $12,500 or $25,000 joint), no tax on car loan interest, and an enhanced deduction for seniors—are claimed on the new Schedule 1-A, not Schedule A. These apply whether you itemize or take the standard deduction.
- Contributions to Governmental Paid Family Leave Programs: These are now fully includible in income but deductible as part of state and local taxes on Schedule A if itemizing.
These changes aim to provide relief amid rising costs, but eligibility varies—e.g., the no-tax-on-tips deduction requires a valid SSN and joint filing if married.
How to Fill Out Schedule A: Step-by-Step Instructions?
Filling out Schedule A requires gathering records like Form 1098 for mortgage interest, receipts for donations, and medical bills. Here’s a breakdown by section:
1. Medical and Dental Expenses (Lines 1–4)
Deduct unreimbursed expenses exceeding 7.5% of your AGI (from Form 1040, line 11b). Eligible items include:
- Prescription medications and insulin
- Doctor visits, hospital stays, and lab fees
- Premiums for Medicare Parts B and D (after reductions for self-employed health insurance)
- Long-term care services and equipment like hearing aids or wheelchairs
Exclude reimbursed amounts or premiums paid pretax. For deceased taxpayers, certain estate-paid expenses may qualify. Documentation: Keep bills and insurance statements.
2. Taxes You Paid (Lines 5–7)
Report state and local taxes, subject to the SALT cap:
- Line 5a: Choose income taxes or general sales taxes (not both)
- Line 5b: Real estate taxes
- Line 5c: Personal property taxes
- Line 5d: Total of 5a–5c
- Line 5e: Capped amount (see changes above)
- Line 6: Other taxes (e.g., foreign taxes, but not federal)
No deduction for foreign personal or real property taxes. Tip: Use the IRS sales tax deduction calculator if electing sales taxes.
3. Interest You Paid (Lines 8–10)
- Lines 8a–8c: Home mortgage interest and points (limited if loan exceeds $750,000 acquisition debt; report Form 1098 amounts)
- Line 9: Investment interest (attach Form 4952 if required)
Limits apply if the loan wasn’t used to buy, build, or improve your home—check the box if applicable.
4. Gifts to Charity (Lines 11–14)
- Line 11: Cash or check gifts ($250+ requires written acknowledgment)
- Line 12: Non-cash gifts (attach Form 8283 if over $500)
- Line 13: Prior-year carryovers
- Line 14: Total
Reduce by any benefits received (e.g., event tickets). Limits: Generally 60% of AGI for cash, 30% for appreciated property.
5. Casualty and Theft Losses (Line 15)
Limited to losses from federally declared disasters (attach Form 4684). Excludes net qualified disaster losses.
6. Other Itemized Deductions (Line 16)
Includes items like gambling losses (to the extent of winnings), certain estate taxes, or amortizable bond premiums. List types and amounts.
7. Total and Transfer
Add lines 4, 7, 10, 14, 15, and 16 for line 17.
Common Mistakes and Tips for Maximizing Itemized Deductions
Avoid these pitfalls:
- Forgetting to subtract reimbursements from medical expenses
- Exceeding SALT caps or mixing income and sales taxes
- Not attaching required forms like 8283 or 4952
- Claiming new 2025 deductions on Schedule A instead of 1-A
Tips:
- Bundle deductions: Accelerate payments (e.g., prepay property taxes) if it pushes you over the standard deduction.
- Track everything: Use apps or spreadsheets for receipts.
- Consider bunching charitable gifts every other year.
- If married filing separately, coordinate with your spouse on joint expenses.
For complex situations, consult a tax professional or use IRS tools like the Interactive Tax Assistant.
Final Thoughts on Schedule A and Itemized Deductions
Itemizing on Schedule A can be a smart move for taxpayers with significant deductible expenses, especially with the 2025 SALT limit increase. However, compare it to the standard deduction to ensure it’s beneficial. Stay updated via IRS.gov, as rules can change— the page for Schedule A was last reviewed on January 23, 2026. By accurately reporting your deductions, you can reduce your tax burden and keep more of your hard-earned money.
For more details, refer to the official IRS instructions at https://www.irs.gov/pub/irs-pdf/i1040sca.pdf. If you need help filing, consider free resources like VITA or tax software.