Itemized Deduction Calculator 2021

Ready-To-Use Itemized Deduction Calculator 2021

Download Itemized Deduction Calculator 2021 or Schedule A Calculator in Excel, OpenOffice Calc, and Google Sheet to slash your 2021 Tax liability.

Moreover, this template consists of 50+ claimable medical expenses and many other deductions that can help you decrease your taxable income.

Furthermore, this template can be helpful to individual taxpayers, married filing jointly, head of household as well as tax consultants/accountants.

What are Itemized Deductions?

IRS allows deductions on Adjustment Gross Income (AGI). The taxpayer has a choice of taking the standard deduction or itemizing deductions while filing their taxes each year.

The standard deduction is a fixed amount that a taxpayer can deduct from his/her AGI. This amount varies depending on your tax filing status and is adjusted annually to account for inflation.

Whereas under the itemized deductions, the taxpayer can deduct allowable expenses like medical expenses above 7.5% of AGI, mortgage interest expenses, and many other expenses.

It should be noted that to claim itemized deductions, the taxpayer has to keep the receipts of the expenses and has to present them as and when demanded by the IRS in case of an audit.

In 2021, the standard Deduction has also been almost doubled as well as the cap on itemized duction has also been increased.

Standard Deductions for the year 2021 are:

Single taxpayers – $12,550
Heads of household – $18,800
Married filing jointly – $25,100

Who Should Opt for Itemized Deductions?

First and foremost, taxpayers with any filing status can opt for itemized deductions. But it is feasible to opt for itemized deductions can opt for itemized deductions only if it helps to decrease your tax liability.

For this purpose, we need to do some calculations.  Don’t worry, you can use our ready-to-use Itemized Deduction Calculator 2021 to estimate your deductions.

You must add all the allowable expenses under Itemized Deductions and compare the sum of the amount with your standard deduction amounts given above. If the expenses exceed the standard deduction, then itemizing is a good option.

Moreover, it should be kept in mind that opting for itemized deductions necessitates the taxpayer to keep receipts of expenses claimed. After you file, you should save those receipts in case of an audit. IRS can demand an audit of taxes for as long as 6 years.

Download Itemized Deduction Guide By IRS

Here is the guide by IRS for those who are opting for Itemized Deductions. This guide provides details about the claimable and non-claimable expenses.

IRS Guide for Schedule A Itemized Deductions

Click on the link below to download the guide:

IRS Guide for Schedule A Itemized Deductions

Expenses Claimable under Itemized Deductions

  • Unreimbursed Medical Expenses above 7.5% of Adjusted Gross Income(AGI)
  • State and Local Taxes
  • Mortgage Interest Expenses
  • Charitable Contribution Expenses
  • Uninsured Casualty and Theft Expenses
  • Miscellaneous Expenses

Each head mentioned above consists of many sub expenses that can be claimed under itemized deductions. The list, rules, and amount of claimable expenses are given in the guides below.

Medical Expense Guide By IRS

Here is the guide by IRS for those who are opting for Itemized Deductions. This guide provides details about the claimable and non-claimable medical expenses.

Click on the link below to download the guide:

IRS Guide for Medical Expenses

Mortgage Expenses Guide By IRS

Here is the guide by IRS for those who are opting for Itemized Deductions. This guide provides details about the claimable and non-claimable Mortgage Interest expenses.

Mortgage Interest Eligibility

Click on the link below to download the guide:

IRS Guide for Mortgage Interest Deductions

Charitable Contribution Guide By IRS

Here is the guide by Investopedia for those who are opting for Itemized Deductions. This guide provides details about the claimable and non-claimable Charitable Contribution expenses.

Click on the link below to read the guide:

Guide for Charitable Contribution

Download Itemized Deduction Calculator 2021 (Excel, OpenOffice Calc & Google Sheet)

We have created an Itemized Deduction Calculator 2021 with predefined formulas and functions. This template helps calculate itemized deductions that will help you reduce your taxable income for the tax year 2021.

Download by clicking below on the desired format:

Microsoft Excel OpenOffice Calc Google Sheet

Additionally, you can also download Federal Income Tax templates like Federal Income Tax Calculator 2021, Recovery Rebate Credit Calculator, Employee Retention Credit Calculator 2021, Paycheck Calculator, and IRS Compliant Mileage Log Template.

Furthermore, feel free to contact us for the customization of this template as per your requirement. We also design new templates based on your needs. You can hire us for our services on Fiverr or directly contact us at info@msofficegeek.com.

Components of Itemized Deduction Calculator 2021

In the first row, insert your Adjusted Gross Income the template uses this amount to define medical expenses.

Itemized Deduction Calculator 2021 consists of 6 sections. Let’s understand each section and its applicability in detail.

Unreimbursed Medical Expenses Above 7.5% of AGI

Unreimbursed Medical Expenses - Schedule A

The taxpayer can claim only those medical expenses which are unreimbursed elsewhere on the Federal Income Tax.

Moreover, there are around 55 unreimbursed medical expenses from minor check-ups to surgeries or even consultations that a person can claim under Itemized Deductions.

List of Unreimbursed Medical Expenses Claimable under Itemized Deductions:

  1. Abortion
  2. Acupuncture
  3. Rehabilitation for Alcoholism
  4. Ambulance
  5. Other Vehicle used for Medical Transportation
  6. Annual Physical Examination
  7. Artificial Limb
  8. Artificial Teeth
  9. Bandages
  10. Birth Control Pills
  11. Body Scan
  12. Braille Books and Magazines
  13. Breast Pumps and Supplies
  14. Breast Reconstruction Surgery
  15. Installation of Medical Equipment at home
  16. Installation of Medical Equipment in Car
  17. Chiropractor Expenses
  18. Christian Science Practitioner
  19. Contact Lenses
  20. Crutches
  21. Dental Treatment
  22. Diagnostic Devices
  23. Disabled Dependent Care Expenses
  24. Rehabilitation from Drug Addiction
  25. Medicines with Prescription
  26. Eye Examination
  27. Eyeglasses
  28. Eye Surgery
  29. Fertility Enhancement
  30. Guide Dog or Other Service Animal
  31. Treatment at a health institute
  32. Expenses Paid to Health Maintenance Organization
  33. Hearing Aids
  34. Medical Home Care
  35. Hospital Services
  36. Laboratory Fees
  37. Lead-Based Paint Removal harming small Children
  38. Treatment for mental illness
  39. Cost of meals and lodging at a hospital or similar institution
  40. Qualified long-term care services
  41. Qualified Long-Term Care Insurance Contracts
  42. Meals Expenses at Hospitals
  43. Medical Conference Expenses
  44. Nursing Home Expenses
  45. Wages and Other Expenses Paid for Nursing Services
  46. Operation or Surgery Expenses
  47. Organ Donors Expenses
  48. Osteopath Expenses Paid for medical care
  49. Oxygen and Oxygen equipment Expenses
  50. Pregnancy Test Kit
  51. Vasectomy Expenses
  52. Weight-Loss Program Expenses only Patients With obesity, hypertension, or heart disease
  53. Wheelchair Expenses
  54. Wig Expenses
  55. X-ray Expenses

According to the list above, a taxpayer can claim almost all kinds of medical expenses made during the year. For caps and limitations kindly download IRS Guide on Medical Expenses given above.

State and Local Tax Expenses

State and Local Taxes - Itemized Deductions

State and Local taxes like State Income Tax, Sales tax, property taxes, and personal property taxes can also be claimed under Itemized Deductions.

Moreover, Personal Property taxes include fees paid for registering your car, motorcycle, or boat.

Property taxes
State and local Income taxes

State and local Sales taxes
Personal property taxes (paid to register a car, boat, or motorcycle)

Insert amount in those cells which apply to you.

Mortgage Interest Expenses

Mortgage Interest Expenses - Itemized Deductions

Usually, taxpayers make this mistake. They opt for Standard deductions and anticipate claiming mortgage interest expenses on their tax return. To claim the mortgage interest expenses, it is necessary to opt for Itemized Deductions.

Moreover, mortgage interest claiming expenses maximum limit depends on filing status. Individuals filing as single, married filing jointly, or head of household can deduct mortgage interest up to a loan maximum of $750,000 in 2021. If you’re married but filing separately, the total is $375,000 for each.

Furthermore, you can claim mortgage interest on a second home that is for personal use and not on rent or resale during the year.

Mortgage Interest Expenses include the following:

Primary Residence Mortgage Interest
Second Home Mortgage Interest (non-rented or resale)
Mortgage insurance premiums expiring at the end of 2021
Interest paid on money borrowed to purchase taxable investments

Insert amount in rows that apply to you.

Charitable Contribution Expenses

Itemized deductions allow deduction of charitable contributions made to qualified/non-profit organizations during the year from your taxable income up to a certain limit.

Moreover, you can claim charitable contribution deductions for cash contributions up to 100% of your Adjusted Gross Income (AGI).

Furthermore, charitable contributions can be cash, goods, property, and expenses made during voluntary services. It includes the following:

Cash Donations
Property (at Fair Market Value)
Gifts
Out-of-pocket expenses related to volunteer activities

Thus, add up your expenses and insert the respective amount in the respective cells. It should be noted that you need to keep a receipt of donations made to non-profit organizations.

Charitable Contributions Schedule A

Uninsured Casualty and Theft

You may be allowed to deduct property damage caused by a federally declared catastrophe, such as a wildfire, hurricane, or flood. You can look for federally declared disasters for the year 2021 on FEMA.gov.

Moreover, any losses covered by insurance are not eligible for a deduction, and you must remove $100 from each casualty loss incurred during the year before computing your deduction.

Hence, Uninsured Casualty Expenses includes the following:

Loss due to a federally declared disaster, such as a wildfire, hurricane or flood
Loss due to theft

Other Expenses

In addition to the above expenses, a taxpayer can also deduct these less common itemized deductions. These include:

Gambling losses (to the extent of taxable gambling winnings)
Amortizable bond premiums
Impairment-related work expenses of a disabled person

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Moreover, send us your queries or suggestions in the comment section below. We will be more than happy to assist you.

Disclaimer: This article is for information and educational purpose. Information provided here shall not be treated as tax advice. Kindly consult a tax expert before filing your tax return.

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