Question

Tom has calculated his itemized deductions versus the standard deduction and decided to report itemized deductions when he files his tax return. Which form will Tom need to include with his return?

Schedule B

Schedule C

Schedule D

Schedule A

Answer 1

The correct option is (d).

Schedule A.

In USA we Use Schedule A (Form 1040) to figure your itemized deductions. In most cases, your federal income tax will be less if you take the larger of your itemized deductions or your standard deduction. The goal of the schedule is to help walk taxpayers through allowable tax deductions to reduce their overall tax liability. By claiming itemized deductions, you might be able to save additional tax dollars if you choose this route over taking the standard deduction. The amount you save depends on your tax bracket and deductions made. Yet, many taxpayers are not any of the itemized deductions discussed below are reduced or eliminated. This article will review how itemized deductions were changed, limited, or eliminated as part of the Tax Cuts and Jobs Act (TJCA) tax reform.

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