What Are The 1040 Tax Filing Itemizing Requirements?

1040 Tax Filing Itemizing Requirements are rules and guidelines for itemizing deductions in your Form 1040 IRS Individual Income Tax Return. Form 1040 is a form used to catalogue everything you earned as an individual. You can ease your tax burden by claiming certain expenses as deductions. It's a complicated process that requires you to keep lots of paperwork on hand, but if you do it right, the savings you earn will make it worthwhile.

How Itemized Deductions Work

Form 1040 tax returns allow you to make two types of deductions - standard deductions and itemized deductions. Standard deductions are deductions that every taxpayer is automatically eligible for. The amounts are set based on age and tax filing status. The itemized deductions are based on eligible expenses. You should add together all your itemized deductions, compare the totals to standard deductions and choose whichever one is bigger.

Filling Out Itemized Deductions

In order to be eligible for itemized deduction, you must be a US citizen or a permanent resident alien. All the deductions must be listed in both the main form and the Schedule A. The breakdown of deductions goes into Schedule A - the main form should only contain the total. The expenses you can claim include:

  • State and local taxes - includes income taxes and property taxes.
  • Real estate taxes - so long as they include service fees for things like trash pickup, recycling, etc.
  • Charitable contributions - they can be either cash contributions or non-cash contributions, so long as the amount you claim represents the contribution's free market value.
  • Medical expenses - include medical, dental and prescription drug costs that exceed 7.5% of your Adjusted Gross Income.
  • Job related expenses - any expenses that your employee didn't reimburse you for. If you are freelance, you may be able to claim every job-related expense you have.
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