According to the Internal Revenue Service, tax deductions can be itemized using the Itemized Deductions Worksheet (Schedule A) included with IRS 1040 tax forms. Enter items for deduction to the appropriate lines on the worksheet, then carryover the total deduction amount to tax forms. To legally claim an expense as a tax deduction, tax payers should be prepared to provide pay stubs, bank statements, charity receipts and other tax statements to the IRS if requested.
- Determine which items qualify for a tax deduction
Read the Schedule A itemized deduction worksheet and instructions provided by the IRS to determine which items qualify as deductions. Visit IRS.gov for instructions or visit local libraries or post offices to pick up 1040 tax forms with worksheets and instructions.
- Fill out the Itemized Deductions Worksheet
List deductions and dollar amounts on the appropriate lines. For example, list medical and dental expenses on Line 1. List state and local income taxes on Line 5. Use this worksheet to determine the total deduction amount.
- Enter the total amount of itemized deductions on IRS Form 1040
Calculate the total amount of itemized deductions and add it to Line 29 of the worksheet. Decide whether to claim this deduction amount on tax form 1040 or take the standard deduction offered instead. Make this decision based on adjusted gross income as the itemized deduction amount is reduced if adjusted gross income surpasses the designated income threshold.