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Schedule A itemized tax deductions can make a big difference on your 2025 return. Instead of automatically taking the standard deduction, you can itemize eligible expenses on Schedule A—medical and dental costs, state and local taxes, mortgage interest, charitable contributions, and other allowable deductions—to reduce your taxable income and potentially lower your tax bill.
This newsletter explains how Schedule A works and shows step-by-step examples to help you decide whether to take the standard deduction or itemize for 2025.
What Is Schedule A?
For 2025 tax returns, Schedule A is the worksheet you attach to your Form 1040 to report Schedule A itemized tax deductions instead of taking the standard deduction. On Schedule A you list eligible expenses that reduce your taxable income — examples include medical and dental costs, state and local taxes (SALT), mortgage interest, charitable contributions, casualty and theft losses in federally declared disaster areas, and other allowable itemized deductions.
IRS Schedule A Form 1040 for itemized deductions
Common Itemized Deductions on Schedule A
Medical and dental expenses (that exceed 7.5% of your adjusted gross income)
State and local taxes paid (up to $10,000)
Interest you paid (mortgage interest and other interest)
Gifts to charity (charitable contributions)
Casualty and theft losses (in federally declared disaster areas)
Other miscellaneous deductions (some include: Gambling Losses, Estate Tax, Certain Legal Fees, Impairment-related work expenses for people with disabilities)
You only use Schedule A when your total itemized deductions EXCEED the standard deduction amount. For 2025, the standard deduction is $15,750 for single filers and $31,500 for married couples filing jointly. Since 2018, fewer taxpayers benefit from itemizing because the standard deduction was doubled.
How Is Schedule A Calculated
Calculating Schedule A itemized deductions for your 2025 tax return is a simple four-step process: total each deduction category using the IRS rules, add the category totals, compare that itemized total to the 2025 standard deduction for your filing status, and — if itemizing — enter the Schedule A total on your Form 1040.
Step-by-Step Calculation
Step 1 — Total each deduction category (apply rules and thresholds)
Step 2 — Add the category totals to get your itemized deductions amount
Step 3 — Compare the itemized total to your standard deduction
Step 4 — If itemizing, enter the Schedule A total on your Form 1040
Step 1: Calculate Each Deduction Category
Add up eligible expenses in each of the six Schedule A sections. Important category rules to remember:
Medical and dental expenses: Deduct only the portion that exceeds 7.5% of your adjusted gross income (AGI). Calculate the AGI threshold, subtract it from total medical/dental expenses, and record the remainder.
Taxes you paid (SALT): State and local taxes (income or sales taxes, plus real estate and personal property taxes) are combined and capped at $10,000 total for individuals and married couples filing jointly.
Interest you paid: Mortgage interest is deductible subject to limits based on the loan date and loan amount; other deductible interest (investment interest) may be limited by investment income.
Charitable contributions: Cash and non-cash gifts are generally deductible up to percentage limits of AGI (documentation rules apply for donations of $250+ and non-cash gifts over $500).
Other itemized deductions: Includes certain miscellaneous deductions allowed by the IRS; check current IRS guidance for eligible items.
Step 2: Add Up All Categories
After calculating each category amount, sum them to get your Schedule A total (total itemized deductions). That total is what you'll compare to the standard deduction for your filing status.
Step 3: Compare to Standard Deduction
Choose the larger deduction — the Schedule A total or the 2025 standard deduction amount for your filing status. Use the table below (updated for 2025) in the examples and to run your own comparison.
Filing Status (2025) | Standard Deduction Amount |
Single | $15,750 |
Married Filing Jointly | $31,500 |
Head of Household | $23,625 |
Married Filing Separately | $15,750 |
Quick micro-example (2025): If your AGI is $60,000 and unreimbursed medical expenses total $5,500, the medical threshold is $60,000 × 7.5% = $4,500, so deductible medical = $5,500 − $4,500 = $1,000. Add that $1,000 to your other Schedule A lines and compare the grand total to the 2025 standard deduction for your filing status.
Step 4: Enter on Your Tax Return
If you choose to itemize, enter your Schedule A total on the appropriate line of your Form 1040. That Schedule A amount reduces your adjusted gross income to arrive at taxable income on your tax return.
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Example 1: Medical Expense Deductions
Scenario (illustrative for 2025): Sarah is a single filer with adjusted gross income (AGI) of $60,000 and significant out-of-pocket medical and dental costs during the year.
Sarah's Medical and Dental Expenses
Doctor visits: $2,100
Prescription medications: $1,800
Dental work: $3,200
Eye surgery (not covered by insurance): $4,500
Total medical/dental expenses: $11,600
Step 1: Calculate 7.5% of Sarah's AGI (medical/dental threshold)
$60,000 × 0.075 = $4,500
Step 2: Subtract the AGI threshold from total medical/dental expenses (after removing any insurance reimbursements)
$11,600 − $4,500 = $7,100
Result: Sarah can claim $7,100 of medical and dental expenses on Schedule A as deductible medical/dental expenses for the year.
Takeaway: Even with $7,100 deductible medical expenses, Sarah should compare her total itemized deductions (including any mortgage interest, SALT, and charitable gifts) to the 2025 single standard deduction ($15,750) before deciding whether to itemize.
Remember: Only unreimbursed medical and dental expenses paid in the tax year count. Subtract insurance reimbursements first, then apply the 7.5% of AGI threshold to determine the deductible portion.
Example 2: State and Local Tax Deductions
Scenario (illustrative for 2025): Michael and Jennifer are married filing jointly and paid several state and local taxes during the year.
Michael and Jennifer's SALT Calculation
State income taxes paid: $8,500
Property taxes on their home: $7,200
Total SALT expenses before cap: $15,700
Important limit: Under current law the combined deduction for state and local taxes (SALT) remains capped at $10,000 for most filers in 2025.
Result: Michael and Jennifer can deduct only $10,000 on Schedule A for state local taxes, even though they paid $15,700.
Takeaway: In higher‑tax states the SALT cap often reduces the benefit of itemizing — compare SALT plus mortgage interest and charitable contributions to the 2025 standard deduction before deciding.
How to choose state income vs. sales tax: you may elect to deduct state income taxes or state sales taxes (but not both) in a single year — generally choose whichever yields the larger deduction. Check IRS sales tax tables or your state’s guidance for large‑purchase calculations and keep receipts for major purchases if you elect sales tax. Use the expense tracking template to capture property tax bills and receipts for 2025 filing.
Example 3: Mortgage Interest Deductions
Scenario (illustrative for 2025): Robert bought a home in 2023 and received a Form 1098 showing the mortgage interest he paid during the year.
Robert's Mortgage Interest
Mortgage principal: $600,000
Interest paid in year (from Form 1098): $38,700
Mortgage date: Loan taken after December 15, 2017
Deduction limit: For loans originated after 12/15/2017, interest is generally deductible on up to $750,000 of qualified mortgage debt (older loans may use the $1,000,000 limit).
Result: Because Robert's mortgage principal is below the $750,000 limit, he can generally deduct the full $38,700 of mortgage interest on Schedule A for 2025, subject to documentation and Form 1098 reporting.
Takeaway: Mortgage interest is often the largest Schedule A item for homeowners — include Form 1098 details, review loan origination dates and limits, and compare the total to the 2025 standard deduction before deciding to itemize.
Quick tips:
- Check Form 1098 from your lender for the exact "interest paid" amount and lender information — this is the primary documentation for mortgage interest deductions.
- Home equity loan interest is deductible only when the loan proceeds were used to buy, build, or substantially improve the home that secures the loan (verify purpose and limits).
- If part of your mortgage balance exceeds the deduction cap, the deductible interest is prorated — consult the Form 1040/Schedule A instructions or your tax advisor for the exact calculation.
Example 4: Charitable Contribution Deductions
Scenario (illustrative for 2025): Lisa makes regular cash and non‑cash gifts to qualified charities and wants to claim them on Schedule A.
Lisa's Charitable Contributions
Cash donations to her church: $3,000
Monthly donations to an animal shelter: $1,200
Donation of used furniture (fair market value): $1,500
Donation of clothing to Goodwill (fair market value): $800
Total charitable contributions: $6,500
Documentation: Lisa kept receipts for cash donations and written acknowledgments for any donation of $250 or more — necessary to substantiate cash gifts on Schedule A.
Result: Lisa can report $6,500 of charitable contributions on Schedule A, subject to AGI percentage limits that apply to certain types of gifts (confirm the 2025 AGI limits for specific property or capital gain property donations).
Takeaway: Keep detailed receipts and acknowledgments. For non‑cash gifts over $500, maintain records of the fair market value; for some larger non‑cash gifts you must file Form 8283 and high‑value donations may require a qualified appraisal.
Quick tip: Donating appreciated securities often provides a greater tax benefit than donating cash — you may deduct the fair market value of the securities and generally avoid capital gains tax on the appreciated amount. Use the donation receipts checklist before making large gifts and record contributions in the Schedule A tracking template to support your 2025 itemized deductions.
Example 5: Combining Multiple Deduction Categories
Part 5a -James & Maria (married filed joint)
James and Maria, a married couple filing jointly, are deciding whether to take the standard deduction or itemize for their 2025 return. Below is a clear comparison showing how multiple Schedule A categories can combine to push taxpayers above the standard deduction.
James and Maria's Deduction Comparison
Itemized Deductions:
Medical expenses (after 7.5% AGI threshold): $4,200
State and local taxes (capped at $10,000): $10,000
Mortgage interest: $12,500
Charitable contributions: $7,300
Total itemized deductions: $34,000
Standard Deduction:
Married filing jointly (2025): $31,500
Decision: Since their itemized deductions ($34,000) exceed the 2025 standard deduction ($31,500), James and Maria should itemize on Schedule A.
Tax savings: By itemizing, they reduce taxable income by $2,500 more than the standard deduction. Multiply that difference by your marginal tax rate to estimate federal tax saved — for example, at 22% this would be about $550; adjust the percentage to match your bracket or use a tax calculator.
This example shows how combining medical expenses, SALT, mortgage interest, and contributions can make itemizing worthwhile even with higher standard deduction amounts in recent years.
Part 5b — Single: Medical + Charity Year
Scenario: Single filer with AGI $55,000. Medical/dental expenses (after 7.5% AGI): $6,000. Charitable contributions: $2,500.
Total itemized deductions: $8,500. Standard deduction
Decision: take standard deduction of $15,750.
Takeaway: Significant medical costs help but often still fall short of the single standard deduction.
Part 5c — Single: high sales (car purchase) tax vs. state income tax
Scenario: Single filer buys a $35,000 car and also paid state income tax of $2,000. If electing state sales tax, deductible sales tax (using IRS tables plus the large-purchase allowance) might be about $2,450 versus $2,000 state income tax.
Total itemized deductions: (sales tax chosen) ≈ $2,450 + small charity $300 = $2,750
Decision: take standard deduction of $15,750.
Takeaway: Elect sales tax only when it clearly exceeds state income tax; keep purchase receipts and consult IRS sales tax tables for your state.
Part 5d — Married Filing Jointly: Big Medical Year, No Mortgage
Scenario: MFJ, AGI $120,000. Total medical/dental expenses $12,000 → threshold 7.5% = $9,000; deductible medical = $3,000. SALT $4,000; Charity $3,500.
Total itemized deductions: $10,500. Standard deduction
Decision: take standard deduction of $31,500
Takeaway: Without mortgage interest, medical expenses alone rarely push MFJ filers above the larger standard deduction.
Part 5e — Married Filing Separately: One Spouse Has Large Medical Expenses
Scenario: Married filing separately to let Spouse A claim large medical expenses. Spouse A: AGI $40,000, medical expenses $7,500 → threshold 7.5% = $3,000; deductible = $4,500. Remember, Spouse B has a standard deduction $15,750 (MFS, 2025) also. Filing together will be a total standard deduction on $31,500.
Decision: Consider Married Filing Separately only after weighing lost credits and other tax consequences. In this case, they will not benefit filing separately, because they will lose the standard deduction provided by Spouse B (15,750).
Takeaway: Filing separately can increase total household deductions in some cases, but it can reduce credits and change other tax calculations — run both scenarios.
Part 5f — Head of Household: High Property Taxes + Mortgage Interest
Scenario: Head of Household, AGI $90,000. Property taxes $6,500; mortgage interest $8,200; charity $1,200.
Total itemized deductions: $15,900.
Decision: Take standard deduction of $23,625
Takeaway: Even with mortgage and property taxes, HOH standard deduction is substantial — itemize only when combined items clearly exceed it.
Part 5g -Head of Household: Charity + Medical + Sales Tax Mix
Scenario: HOH, AGI $70,000. Medical (post-threshold) $2,000; Charity $4,000; Sales tax on a major purchase counted instead of state income tax $3,500.
Total itemized deductions: $9,500.
Decision: Take standard deduction of $23,625
Takeaway: Bunch charitable gifts or time elective medical procedures to try to push totals over the standard deduction in a targeted year.
Part 5h — Single: Small Mortgage Interest + Large Charitable Contributions (Bunching)
Scenario: Single, AGI $80,000. Mortgage interest $3,750; Charity in a bundled year $12,000 (bunching into one year).
Total itemized deductions: $15,750.
Decision: essentially a tie — either approach may be acceptable; consider recordkeeping and future-year plans.
Takeaway: Bunching contributions into one year (possibly using a donor‑advised fund) can flip the choice to itemize for single filers.
Example 6: When Itemizing Doesn't Make Sense
Thomas, a single filer with modest income and few deductible expenses, is evaluating whether to itemize for his 2025 return.
Thomas's Deduction Evaluation
Itemized Deductions:
Medical expenses (after 7.5% AGI threshold): $0 (didn't exceed threshold)
State and local taxes: $3,200
Mortgage interest: $0 (rents apartment)
Charitable contributions: $1,500
Total itemized deductions: $4,700
Standard Deduction:
Single filer (2025): $15,750
Decision: Since Thomas's itemized deductions ($4,700) are far below the 2025 standard deduction ($15,000), he should take the standard deduction.
Benefit: By taking the standard deduction, Thomas reduces his taxable income by an additional $11,050 (15,750 vs 4,700) compared to itemizing, and he saves time on documentation and preparation.
When to generally take the standard deduction: You rent instead of own, have only small state/local taxes and modest charitable gifts, or your medical and casualty losses don't exceed AGI thresholds. If your situation changes (buy a home, have large unreimbursed medical bills, or make big charitable gifts), save receipts and re-run the comparison for the next tax year using the Schedule A tracking template.
Example 7: Married Filing Separately Strategy
Alex and Jamie are married and evaluating whether filing separately for their 2025 return might allow one spouse to itemize while the other takes the standard deduction — a strategy that can sometimes increase total household deductions but carries trade-offs.
Alex and Jamie's Filing Status Strategy
Alex's Deductions:
Medical expenses (after 7.5% AGI threshold): $8,500
State and local taxes: $5,000
Mortgage interest: $9,000
Charitable contributions: $2,000
Total itemized deductions: $24,500
Jamie's Deductions:
Medical expenses (after 7.5% AGI threshold): $0
State and local taxes: $3,000
Mortgage interest: $0
Charitable contributions: $1,000
Total itemized deductions: $4,000
Filing Options:
Option 1 (Filing Jointly):
Combined itemized deductions: $28,500
Standard deduction (MFJ, 2025): $31,500
Best choice: Standard deduction ($31,500)
Option 2 (Filing Separately):
Alex: Itemize ($24,500)
Jamie: Standard deduction (MFS, 2025): $15,750
Total deductions: $40,250
Result: In this illustrative scenario, filing separately increases total household deductions (about $8,750 more than filing jointly with the standard deduction). That extra deduction can lower taxable income, but the strategy isn’t universally better.
Important caveats: Filing separately can cause you to lose or reduce certain tax benefits — for example, eligibility for some education credits, the earned income tax credit, and certain tax-free exclusions or credits may be limited or unavailable under Married Filing Separately. State tax rules may also change the outcome. Always run both filing scenarios in tax software or consult a tax professional before choosing a filing status.
