What Type of Itemized Deductions Can Be Included on a 1040 Tax Return?


Quick Answer

The type of itemized deductions that can be included on a Form 1040 include business use of a vehicle, business use of a home and interest expense, explains the Internal Revenue Service. Other deductions allowed include medical and dental expenses and home mortgage points paid.

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Full Answer

When itemizing deductions, taxpayers must use Schedule A that accompanies Form 1040, explains the IRS. The IRS allows taxpayers to claim either itemized deductions or the standard deduction, whichever amount is larger. If a taxpayer chooses to itemize his deductions, he must report all of his deductible expenses on the Schedule A.

The Schedule A form is a one-page form that has seven sections, and each section relates to different categories of the itemized deduction. The categories cover interest payments, such as investment and mortgage interest; state and local taxes; charitable donations; medical and dental expenses; and casualty and theft losses. When preparing Schedule A, the taxpayer needs to calculate the expense in each category, but not all expenses on Schedule A are 100 percent deductible. Some expenses must be reduced by a percentage of a taxpayer's adjusted gross income, explains the IRS. If a taxpayer chooses to file form 1040EZ, he cannot deduct his expenses. They must be itemized.

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