Page 14: Deductions

Skip this page only if you paid no medical costs out of pocket, no property or state income tax, and no mortgage interest — which is rare.

You need this page if you paid a mortgage, property tax, state tax, medical or dental bills, or health insurance premiums yourself. Complete it even if you expect to take the standard deduction: several states allow itemized deductions when the federal return does not.

What this page does. It is the first half of your itemized deductions: medical and dental, insurance premiums, taxes paid, and mortgage interest. Page 15 carries on with charitable giving and the rest.

Before You Begin

Please gather any records related to the following:

  • Medical and dental expenses
  • Prescription and pharmacy records
  • Form 1095-A (Marketplace Health Insurance Statement), if applicable
  • Property tax statements
  • Vehicle registration renewals
  • Home purchase or sale closing statements
  • Form 1098 mortgage interest statements
  • Long-term care insurance information
  • Medicare premium records

Having these documents available will make completing the page much easier and more accurate.

Medical and Dental Expenses

No Medical Expenses?

If you did not have any out-of-pocket medical or dental expenses during the year, simply check the box provided and move on to the next section.

If You Had Medical Expenses

Enter amounts you personally paid and were not reimbursed for.

Examples include:

  • Doctor visits
  • Dental care
  • Hospital expenses
  • Prescription medications
  • Eyeglasses and contact lenses
  • Hearing aids
  • Medical equipment and supplies

Medical Mileage

If you drove for medical care, enter the number of miles driven.

Mileage is divided into:

  • January through June
  • July through December

Please enter the number of miles rather than a dollar amount. We will calculate the allowable deduction.

HSA, MSA, and FSA Payments

If any medical expenses were paid using:

  • Health Savings Account (HSA)
  • Medical Savings Account (MSA)
  • Flexible Spending Account (FSA)

please enter that amount separately.

Since those expenses were paid with pre-tax dollars, they generally cannot be deducted again as medical expenses.

Insurance Premiums

Enter only the premiums that you personally paid or that were withheld from retirement benefits.

Marketplace Health Insurance

If you purchased insurance through the Health Insurance Marketplace:

  • Indicate whether you paid the premiums personally or whether your church paid them on your behalf.
  • If the church paid the premiums directly to the insurance company, enter that amount where requested.

Long-Term Care Insurance

For each policy, please provide:

  • Insurance company name
  • Policy number
  • Premiums paid

Medicare Premiums

Please include any premiums paid for:

  • Medicare Part B
  • Medicare Part D
  • Medicare Advantage Plans

These costs may qualify as deductible medical expenses.

Taxes Paid

This section reports certain taxes that may qualify as itemized deductions.

Please include:

State Income Tax Paid

Enter any balance paid when filing your prior year’s state tax return.

Tax Paid to Another State

If you paid income tax to another state during the year, enter that amount here.

Property Taxes

Include property taxes paid on:

  • Your primary residence
  • A second home
  • A timeshare property

Property Taxes Paid at Closing

If you purchased or sold real estate during the year, review your closing statement carefully and include any property taxes paid at settlement.

Prepaid Property Taxes

If you paid property taxes in advance for a future year, enter those amounts as directed.

Vehicle Registration Taxes

Include only the portion of your vehicle, boat, or trailer registration fee that is based on the value of the property.

Sales Tax

If you made a significant purchase during the year, please provide the details and enter the sales tax paid.

Examples include:

  • Automobiles
  • Boats
  • Motorhomes
  • Major building materials

If you tracked your actual sales tax payments throughout the year, enter the total.

If not, that’s perfectly fine. We can generally calculate the deduction using IRS-approved sales tax tables.

Mortgage Interest

No Mortgage Interest?

If you did not pay mortgage interest during the year, simply check the box provided and continue to the next section.

Primary Residence

Using Form 1098, enter:

  • Mortgage interest (Box 1)
  • Points paid (Box 6)
  • Mortgage insurance premiums (Box 5)

Second Home

If you have a second home, enter the same information for that property as well.

Home Equity Loans

If you paid interest on a home equity loan or line of credit, please indicate how the borrowed funds were used.

This information helps us determine whether the interest qualifies as deductible.

Timeshare Interest

If applicable, enter any mortgage interest associated with a timeshare property.

Seller-Financed Mortgages

If your mortgage is financed by an individual rather than a bank or lender, please provide:

  • Lender’s name
  • Address
  • Social Security Number

This information is required for proper reporting.

Mortgage Refinancing

If you refinanced your home during the year, please provide:

  • Closing date
  • Length of the new mortgage
  • Points paid

Refinancing points are often deductible over the life of the loan, so this information is important when preparing your return.

Common Mistakes to Avoid

Estimated Tax Payments Do Not Belong Here

This section is for the balance paid with a prior-year state tax return.

Estimated tax payments made toward the current year’s taxes should be reported on Page 4.

Church-Paid Health Insurance

Health insurance premiums paid directly by a church on behalf of a minister are handled differently than premiums you paid personally.

Please report the amount where requested so we can determine the proper tax treatment.

Self-Employed Health Insurance

If you are self-employed and claiming a self-employed health insurance deduction, that information generally belongs with your business information rather than here.

Don’t Forget to Subtract HSA, MSA, or FSA-Paid Expenses

Medical expenses paid with pre-tax funds generally cannot be deducted again.

Be sure to include these amounts so we can calculate your deduction correctly.

Vehicle Registration Fees

Only the portion of registration fees based on the value of the vehicle may qualify.

Flat registration fees typically do not qualify as an itemized deduction.

Home Equity Loan Interest

Not all home equity loan interest is deductible.

Generally, the loan proceeds must have been used to buy, build, or substantially improve the home securing the loan.

Please answer this question carefully so we can determine the proper treatment.

Property Taxes Paid at Closing Are Often Missed

When purchasing or selling a home, property taxes are frequently adjusted at closing.

These amounts are often found on your settlement statement and can easily be overlooked.

Please review your closing documents carefully.

Marketplace Coverage Requires Form 1095-A

If you purchased insurance through the Health Insurance Marketplace, please provide Form 1095-A.

Without this form, the IRS may delay processing your return or reject an electronically filed return.

When You’re Finished

Before moving on to Page 15, please take a moment to confirm that you have:

✓ Included all out-of-pocket medical expenses

✓ Reported medical mileage

✓ Entered insurance premiums paid

✓ Included property taxes and state taxes paid

✓ Reported major sales tax purchases

✓ Entered mortgage interest information

✓ Included refinance information, if applicable

✓ Attached Forms 1095-A and 1098, when applicable

A complete Page 14 helps us identify every deduction available to you and ensures that your return is prepared as accurately as possible. If you’re unsure whether an expense qualifies, simply include a note in the comments section and we’ll be happy to review it with you.