IRS Schedule A is a form that taxpayers can use to itemize their deductions if they choose not to take the standard deduction. The standard deduction is a fixed dollar amount that reduces the income on which taxpayers must pay taxes. For tax year 2020, the standard deduction is $12,400 for single filers, $18,650 for head-of-household filers, and $24,800 for married couples filing jointly.

Itemizing deductions allows taxpayers to claim certain expenses incurred during the tax year that can be used to reduce their taxable income. Some of the expenses that can be itemized on Schedule A include:

• State and local taxes: Taxpayers can deduct state and local income, sales, and property taxes, up to a combined limit of $10,000.
• Mortgage interest: Taxpayers can deduct the interest they paid on a mortgage for their primary residence, up to a limit of $750,000 for mortgages taken out after December 15, 2017.
• Charitable donations: Taxpayers can deduct donations made to qualified charitable organizations, up to a limit of 60% of their adjusted gross income.
• Medical and dental expenses: Taxpayers can deduct certain medical and dental expenses that exceed 7.5% of their adjusted gross income.
• Investment interest: Taxpayers can deduct the interest paid on loans to purchase income-producing property, such as stocks or rental property.
• Casualty and theft losses: Taxpayers can deduct losses from theft or natural disasters, such as hurricanes or fires.
• Job search expenses: Taxpayers can deduct certain expenses incurred while looking for a new job, such as resume preparation and travel to interviews.
• Tax preparation fees: Taxpayers can deduct the fees they paid to prepare their tax returns.

It is important to note that the itemized deductions have limits and phaseouts for certain deductions, these limits and phaseouts vary depending on the tax year and the taxpayer’s income. Additionally, certain deductions have been suspended or limited under the Tax Cuts and Jobs Act (TCJA) 2017. For example, the TCJA suspended the deduction for miscellaneous itemized expenses, which included job search expenses and tax preparation fees.

It is also important to note that itemizing deductions requires taxpayers to keep detailed records of their expenses and have the necessary documentation to support their claims. Taxpayers should keep records of all expenses they wish to claim as deductions, including receipts, invoices, and canceled checks.

In summary, taxpayers can use the IRS Schedule A form to itemize their deductions if they choose not to take the standard deduction. Itemizing deductions allows taxpayers to claim certain expenses incurred during the tax year that can be used to reduce their taxable income. Examples of expenses that can be itemized on Schedule A include state and local taxes, mortgage interest, charitable donations, and medical and dental expenses. However, it is important to keep in mind that itemizing deductions requires taxpayers to keep detailed records of their expenses and have the necessary documentation to support their claims. Certain deductions have been suspended or limited under the Tax Cuts and Jobs Act (TCJA) 2017.