When you file your 1040 Individual Income Tax return, if you itemize your deductions, you file a Schedule A with your income tax return. Generally, you will itemize your deductions if these deductions are greater than the standard deduction allowed. Examples of itemized deductions would include: mortgage interest, real estate taxes, medical expenses (subject to 7.5% of your adjusted gross income), state income taxes withheld, charitable contributions and un-reimbursed employee expenses.
Taking these deductions will lower your taxable income and thus federal income tax. It is also important to note that at certain income levels, these itemized deductions are phased out, meaning that you may only be able to take a certain portion of the total itemized deductions.
You can discuss your tax questions and matters with a Denver tax lawyer at The McGuire Law Firm. A free consultation is offered to all potential clients. Hopefully, the video below provides some additional information regarding the Schedule A and itemized deductions!