To itemize deductions and file Schedule A, add up your qualifying expenses for the year, compare the total to the standard deduction for your filing status, and if itemizing wins, list those expenses by category on Schedule A and attach it to your Form 1040. For the 2026 tax year, the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 If your deductible expenses beat that number, itemizing lowers your taxable income by the difference. You make the election simply by filing Schedule A.2Office of the Law Revision Counsel. 26 USC 63 – Taxable Income Defined
When Itemizing Beats the Standard Deduction
The 2026 standard deduction amounts are $16,100 for single filers and married filing separately, $32,200 for married filing jointly or a surviving spouse, and $24,150 for head of household.1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 These reflect increases under the One Big Beautiful Bill Act.
Taxpayers age 65 or older get an additional $6,000 standard deduction per qualifying individual, or $12,000 if both spouses qualify on a joint return.3Internal Revenue Service. Check Your Eligibility for the New Enhanced Deduction for Seniors That raises the bar substantially. A married couple both over 65 would need more than $44,200 in deductible expenses before itemizing pays off.
One rule catches people off guard. If you’re married filing separately and your spouse itemizes, you must also itemize, even if the standard deduction would have been better for you.4Internal Revenue Service. Other Deduction Questions Talk this through with your spouse before either return is filed.
Medical and Dental Expenses
You can deduct unreimbursed medical and dental expenses that exceed 7.5% of your adjusted gross income.5Office of the Law Revision Counsel. 26 USC 213 – Medical, Dental, Etc., Expenses Only the amount above the floor counts. If your AGI is $80,000 and you paid $8,000 in medical bills, your deduction is $2,000, not $8,000.
Qualifying expenses include payments for diagnosis, treatment, and prevention of disease for you, your spouse, and your dependents. Out-of-pocket health insurance premiums count, along with prescription medications, dental work, vision care, and mental health treatment. Cosmetic procedures and general health supplements typically don’t qualify unless they treat a specific condition.
Travel for medical care is deductible too. For 2026, the rate is 20.5 cents per mile driven for medical purposes, plus tolls and parking.6Internal Revenue Service. 2026 Standard Mileage Rates (Notice 2026-10) Lodging near a treatment facility far from home may also qualify, subject to a daily limit.
State and Local Taxes
The SALT cap changed significantly for 2026. It was raised from the $10,000 figure that had been in place since 2018 to roughly $40,400 for most filers under the One Big Beautiful Bill Act, and about half that for married filing separately.7Office of the Law Revision Counsel. 26 USC 164 – Taxes Many homeowners in high-tax areas are back in itemizing territory.
The deduction covers state and local income taxes (or sales taxes, if you choose) plus real property taxes. You pick one or the other for the tax portion, not both.7Office of the Law Revision Counsel. 26 USC 164 – Taxes The sales tax option tends to benefit people in states without an income tax or those who made large purchases during the year.
A phasedown applies at higher incomes. Once your modified adjusted gross income exceeds roughly $505,000, the cap shrinks by 30 cents for every dollar above that threshold, but it never drops below $10,000. Both the cap and the phasedown threshold are adjusted for inflation each year through 2029, then revert to a flat $10,000 in 2030.
Mortgage Interest
Interest on mortgage debt used to buy, build, or substantially improve your primary or secondary residence is deductible on loans up to $750,000 ($375,000 if married filing separately). This limit was made permanent. Mortgages taken out on or before December 15, 2017, still qualify for the older $1 million limit.8Office of the Law Revision Counsel. 26 USC 163 – Interest
Home equity loans and lines of credit are trickier. Interest is deductible only if you used the borrowed funds to buy, build, or substantially improve the home securing the loan. Use the money to pay off credit cards or take a vacation, and the interest is not deductible.9Internal Revenue Service. Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses)
Mortgage insurance premiums are once again deductible for 2026 on contracts issued after 2006, after being unavailable from 2022 through 2025. Your lender reports interest paid on Form 1098, which you’ll use when filling out Schedule A.10Internal Revenue Service. Instructions for Form 1098
Charitable Contributions
Donations to qualifying nonprofits are deductible with annual limits based on the type of gift and the recipient. Cash contributions to most public charities are capped at 60% of AGI. Donations of appreciated property such as stocks or real estate are generally capped at 30% of AGI, and gifts to certain private foundations face a 30% limit as well.11Internal Revenue Service. Charitable Contribution Deductions Amounts above these limits carry forward for up to five years.
Documentation scales with the size of the gift. Any single contribution of $250 or more requires a written acknowledgment from the organization before you file.12Office of the Law Revision Counsel. 26 USC 170 – Charitable, Etc., Contributions and Gifts Non-cash donations totaling more than $500 require Form 8283.13Internal Revenue Service. Instructions for Form 8283
Non-cash gifts valued above $5,000 require a qualified appraisal from an independent appraiser, completed no earlier than 60 days before the donation date and received before your filing deadline. For artwork worth $20,000 or more, the full appraisal must be attached to your return. For any single item or group of similar items exceeding $500,000, the appraisal must also be attached.13Internal Revenue Service. Instructions for Form 8283
Casualty Losses and Gambling Losses
Casualty and theft losses from a federally declared disaster are deductible after subtracting $500 per event and then 10% of your AGI. Losses from other causes, such as a break-in outside a disaster area, don’t qualify.14Internal Revenue Service. Publication 547 – Casualties, Disasters, and Thefts Hold on to insurance correspondence and repair estimates if you were hit by a storm or wildfire in a declared zone.
Gambling losses are deductible only up to the amount of gambling winnings you report as income. You cannot use them to create or increase an overall loss. Report them as “Other Itemized Deductions” on Schedule A, and keep a log of sessions with dates, amounts, and the type of wagering.15Internal Revenue Service. Topic No. 419 – Gambling Income and Losses
Filling Out Schedule A
Schedule A is organized into sections matching the deduction categories above. Before starting, gather Form 1098 from your mortgage lender, property tax bills, charitable donation receipts and acknowledgments, and records of medical payments.
Medical comes first. Enter your total medical expenses on line 1 and your AGI on line 2. The form calculates 7.5% of your AGI on line 3, and you subtract that from the total. Only the amount above the threshold counts.16Internal Revenue Service. Schedule A (Form 1040) – Itemized Deductions
The taxes section is next. Enter state and local income taxes (or sales taxes if you elected that option) and property taxes, and keep the combined total within the SALT cap that applies to your income.7Office of the Law Revision Counsel. 26 USC 164 – Taxes The interest section captures mortgage interest reported on Form 1098. Charitable contributions come next, split between cash and non-cash gifts, with Form 8283 attached if required.
Add lines 4 through 16 to get your total on line 17. Transfer that number to line 12e of Form 1040.16Internal Revenue Service. Schedule A (Form 1040) – Itemized Deductions That total replaces the standard deduction in calculating your taxable income.
What Records to Keep and for How Long
The IRS generally has three years from the date you file to audit a return, so keep supporting documents at least that long. If you underreport income by more than 25% of gross income, the window extends to six years. For fraudulent or unfiled returns, there is no time limit.17Internal Revenue Service. Topic No. 305 – Recordkeeping
Digital records are acceptable. Scanned receipts, PDF bank statements, and electronic acknowledgment letters all work as long as you can produce the original documentation if asked. If you use accounting software, keep the backup file rather than just exported reports, because the IRS may want to verify the integrity of your original records. Condensed data with old transaction details stripped out won’t satisfy an examiner.18Internal Revenue Service. Use of Electronic Accounting Software Records
Filing the Return
E-filing links Schedule A to your Form 1040 automatically and transmits both together, and you’ll get an electronic confirmation of receipt. Tax software performs the AGI calculations and cap enforcement for you.
If you file on paper, mail Schedule A with your Form 1040 to the IRS address designated for your state. Certified mail with return receipt requested gives you proof the return was postmarked on time. Keep a full copy of everything you send, including Schedule A and any attached forms like Form 8283.