Reduce Your Tax Bill by Filing IRS Form 1040 Schedule A
The taxpayers looking for ways to cut their taxes before the end of the year should consider making donations. The Internal Revenue Service claims that the amount a taxpayer donates is deductible from their annual tax return. Before making any donation, make sure the IRS considers the organization you’re planning to donate to as tax-deductive. The IRS provides taxpayers with an EO Select Check Tool that helps determine the tax-deductive status of the organization. To itemize all deductions after you’ve made a donation, file Form 1040 Schedule A.
What is 1040 Schedule A
The IRS Form 1040 Schedule A is known as Itemized Deductions. This form has been designed by the IRS to assist individuals that have donated to charitable organizations deduct their charitable contributions from their tax liability. Other deductible expenses can be included when you file Form 1040 Schedule A. A taxpayer is eligible to pay only a part of their dental and medical expenses, home mortgage interest, unreimbursed employee business expenses, contributions and even theft losses.
1040 Schedule A Form Instructions
Generally, the entire process of filling out Form Schedule A doesn’t take much time. Before you begin completing your Schedule A, make sure you have already filled out Form 1040 as the schedule must be forwarded to the IRS along with your 1040.
These step-by-step instructions help to ensure that all the applicable fields are properly filled and that the form is filed on time. As the document is only a single page, it shouldn’t take longer than 20 minutes to complete the form. Note that most of the information that needs to be provided in the schedule can be taken from your 1040.
The schedule has 30 prompts. Most of them are requests to indicate the values of your expenses. Begin by indicating your name and social security number. Then proceed with providing the following information:
- Medical and dental expenses
- Home mortgage interest
- Taxes paid
- Gifts to charity
- Job expenses;
- Theft and casualty losses, etc.
Make some calculations to be sure the values you’re indicating are correct. When you’ve provided all required information and made all calculations, enter your total itemized deductions. Your deductions may be limited, refer to the schedule’s instructions to know what applicable amount to enter. If your deductions are not limited, just add the required amounts and indicate your total.