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.

Continue Reading

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.

Learn more about Income Tax

Related Questions